I recently read a report that according to an Allen Matkins /UCLA Anderson Forecast Commercial Real Estate Survey and Index Research Project the Los Angeles Commercial Real Estate office space market is expected to remain strong while the Orange County and San Diego County are expected to decline through 2010. This means, for those of us in Los Angeles, we can expect commercial real estate landlords (office leasing) in Los Angeles, to be less willing to negotiate with prospective tenants and less willing to offer them incentives to enter into new leases.
That being said, I am always curious as to the extent that the media controls the real estate market. I understand the the effect of the sub-prime mortgage crisis and the difficulties posed by adjustable rate loans on the overall strength of both the commercial and residential real estate market. However, my question is – to what extent does the media’s forecast control the real estate market? If the national media suddenly predicts a quick rebound in the housing market, will the current real estate market begin to change? My prediction – probably not due the constraints lenders now face. However, I am certain it does effect the market to some unknown extent.