Results of the survey, which will be discussed this Wedndesdayat the at the UCLA Anderson Forecast Conference at UCLA, show thatthe real estate professionals on the panels in Los Angeles and SanDiego sense that while credit conditions are likely to remain tightfor the near term, the credit crunch is starting to ease. But inOrange County and San Francisco, the panels believed the oppositeis true.

Jerry Nickelsburg, UCLA economist and author of the surveyresults summary, explains that the survey asked the regional panelsfor their views on what market conditions will be like in 2011 andasked for the panel members' views on likely changes. In LosAngeles, for example, the panel does not believe the office marketwill tighten between today and 2011. With an average vacancy ratein Los Angeles at levels lower than those of the past 20 years,today's conditions represent a healthy office space market, thepanel believes, and with new supply expected to come on the marketover the next three years at a rate just about equal tothe expectedincrease in demand, the market will remain healthy.

The San Diego panel was pessimistic last December about theregion's office market. It now sees the market tightening out to2011 with both occupancy rates and rental rates higher. "We see theturnaround as a result of the growth in office-using employment,"Nickelsburg points out. "Although SanDiego did not make muchprogress in the first quarter of 2008 in terms of overall jobgrowth, outside of finance, office space-using employment grew inthe first quarter 2008 from the first quarter 2007 by 1.5%."