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MBA NewsLink: Demand Solid in LA Industrial, Weak for Office in 2010, Forecast Says

December 18, 2009

Demand Says Solid in LA Industrial, Weak for Office in 2010, Forecast Says
MBA NewsLink

... The recession will continue to weigh down southern California's office markets next year, but strong growth in India and China can fuel recovery in the area's industrial markets with demand for U.S. goods, said the 2010 Casden Industrial and Office Market Forecast by the University of Southern California Lusk Center for Real Estate.
Tracey Seslen, co-author of the forecast, said job losses "across the board" will force considerable downward pressures on office rents, but falling values in many vacant office buildings will present new opportunities for cash buyers willing to wait out this downturn.
Richard Green, director of the USC Lusk Center and forecast co-author, pointed out that even though Riverside and San Bernardino counties have some of the highest unemployment rates in the country, companies in coastal areas "will be setting up satellite offices in the Inland Empire where there is sufficient land and cheaper rental rates."...