..."The pendulum has swung from landlords to tenants for the first time since 2003 as an abundance of office space and reduced demand is putting pressure on rents across the region. The indicators point to persistent high vacancy rates and weaker office demand through the end of next year," said Delores Conway, Ph.D., Director of the Casden Real Estate Economics Forecast, at a briefing for real estate executives in Los Angeles. "Credit-worthy tenants should be able to renegotiate leases to their advantage," she explained, adding that all-cash buyers will search for well-priced properties in prime locations. Conway cautioned that any forecast for next year's office and industrial markets must be tempered by the economic recession and tight commercial credit conditions. "The full depth of the financial crisis remains to be seen as companies struggle to meet their payroll while paying the rent or mortgage. There is considerable uncertainty in the region's economic outlook until the credit markets begin functioning normally again."...
December 11, 2008