My recent work in Los Angeles has caused me to look at that market a little closer than in the past:

Some forecasts¹ conclude that the office markets in L.A. and San Francisco will continue their downward trend through 2011 as a result of the recession and freezing of available credit for office space development.

As a whole, this is good news for tenants who can expect rental rates to continue to moderate as vacancy rates rise.

Los Angeles County favors better in the forecasts because it entered into this recessionary period with both low levels of vacancy rates and construction in comparison to adjacent Orange County which experienced a construction boom prior.

¹ Allen Matkins/UCLA Anderson Forecast for California commercial real estate