Casden forecast remains gloomy for office landords
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Southern California’s industrial real estate markets have a chance of getting off their knees next year, but the office market should continue to be painful for owners, according to a report released today.
“Heightened traffic at the ports of Los Angeles and Long Beach will create more jobs and an increased need for warehousing across Southern California,’ said Tracey Seslen, co-author of the Casden Real Estate Economics Forecast compiled at USC’s Marshall School of Business.
Office rents will continue to fall, however, as white-collar-job losses extend into next year and drive down demand. That will hurt landlords but offer a break to companies that want to rent more space or renew their leases at potentially lower rates.
Expected nationwide growth in green technology, education and healthcare should bode well for the recovery of L.A.’s office markets in 2011, the report said, but next year will be another tough one for owners.
-- Roger Vincent