Monday, February 8, 2010

Big landlords hope? O.C. recovery in 2013

February 7th, 2010, 2:49 pm · 16 Comments · posted by Jon Lansner

The latest Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey of big landlords ad property owners shows a burgeoning optimism that a revival is somewhat near for much of Southern California. Well, the caveat being — eh, Orange County. Jerry Nickelsburg, UCLA senior economist, says of the region in a press release: “As the recovery from this deep recession takes hold, investors in commercial real estate are increasingly of the view that 2012 is going to represent an improvement over today.”
Yet the report says of Orange County:
“For some time we have been saying that the Orange County office market is a 2013 or 2014 recovery. The loss of finance and real estate jobs created a huge hole in demand which is not easily filled. Our panel is also more optimistic about Orange County than they were six months ago, but the optimism seems to be based more on the transfer of buildings to new owners at lower capital costs and on the decline of rents to levels which are sustainable in today’s market. In other words, the panel expects markets to equilibrate and market conditions to improve, but not to the extent of Los Angeles or San Diego. So, opportunities are going to exist in this very tough market, but not in the creation of new floor space for lease.”

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