USC Lusk Center Casden Real Estate Economics Forecast Says Southern California Office and...

LOS ANGELES -- USC Lusk Center for Real Estate:

--LA County rents on the rise with San Fernando Valley office space topping the charts

--Orange County Class A office rents soar nearly 12 percent overall in past year

--Inland Empire is the top U.S. market for new industrial properties

Slow and steady gains in the overall economy will continue to improve office and industrial fundamentals in 2006 across Los Angeles, Orange, Riverside and San Bernardino Counties. This is according to results from the 2005 Casden Office and Industrial Market Forecast for Southern California released today by the University of Southern California Lusk Center for Real Estate (www.usc.edu/lusk).

"Stable job growth has helped to reduce office vacancy rates and raise rents throughout the region," said Delores Conway, Ph.D., director of the Casden Forecast, at a briefing for real estate executives held this morning in Los Angeles. "Lease renewals reflect the positive outlook of business owners across diverse industries. In the area surrounding Orange County's John Wayne Airport, rents have soared almost 13 percent since 2004 as businesses seek the convenience of being in the Newport Beach-Irvine corridor," explained Dr. Conway.

"Southern California office and industrial markets will continue to hold their value through 2006 thanks to a flood of capital from mutual funds, REITs and pension funds needing to diversify real estate holdings and lock in long-term revenue streams," she observed.

The annual Casden Real Estate Economics Forecast analyzes economic data on rents, vacancies, transactions and employment for the Los Angeles County, Orange County and Inland Empire office and industrial markets. The data was supplied by Grubb & Ellis which co-sponsored the forecast with the California Real Estate Journal. A multifamily housing forecast will be released on March 30, 2006.

Editor's note: Copies of the Casden Real Estate Economics Forecast 2005 Southern California Office & Industrial Market Report can be obtained for $75 by calling the USC Lusk Center at (213) 740-5000 or email: lusk@marshall.usc.edu.