These were some of the observations by real estate industry experts yesterday at "Real Estate 2003," a forecast, review and networking event presented by the Beverly Hills-based Real Estate Conference Group. The annual all-day event drew 1,100 registrants, according to Martin S. Stolzoff, conference chairman and partner at the Real Estate Conference Group. Stolzoff dedicated the gathering at the Beverly Hilton Hotel to the memory of the late Dan Donahue, chairman of Costa Mesa-based development company Donahue Schriber, who died Dec. 31.

The prevailing sentiment at the conference was that the economy and markets will remain flat until sometime near the end of this year, when many expect the recovery to gain momentum. Members of the conference economic panel agreed that federal government economic indicators show that the U.S economy actually began to recover some time ago, but the recovery has remained relatively weak and has produced few jobs, so it has gone relatively unnoticed. That should change later this year, they say, and should translate into improvements in most sectors of commercial real estate.

The speakers cited weak office markets throughout the United States, but they pointed out that by almost any measure--in office, industrial, apartment and retail sectors--Southern California is faring better than most of the country.

The speakers also pointed out that generalizing about real estate conditions here in the Southland is difficult. For example, the leasing market has been weak, but investment sales have remained hot because of low interest rates and the huge volume of investment capital that is in the market.

Both in panel sessions and special presentations, keynote and featured speakers, discussed strategies for creating opportunities and meeting challenges, both now and when economic conditions improve.