Financial-Services Layoffs Will

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Nearly half of those who responded to this week's QuickPoll believe financial-services layoffs will "Destroy the OfficeMarket" (49%), while 28% say the layoffs will "Not Have MuchImpact," and slightly less (23%) believe layoffs will "Give OtherTenants Expansion Opportunities."Dave Odmark, an office sales andleasing specialist with Grubb & Ellis|BRE Commercial's SanDiego office, thinks the biggest hurt on the office sector is beingput on by residential real estate.

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I would say it will have not have much impact. I think that theamount of space that financial institutions lease as a whole is notsignificant. If all the financial institutions cut back on theirspace, say 10%, the overall affect on the office market would bepretty insignificant.

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It's not like the mortgage industry where they are completelyshutting down entire offices. A slight bout of layoffs in thefinancial industry isn't going to impact the office market verymuch.

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On the other hand, mortgage companies have definitely affectedsome submarkets substantially. It's already hit the real estateindustry with homebuilders, escrow companies, title companies. It'sthe residential real estate industry that's really hurt the officemarket. I haven't seen the big affect from financial institutions.The real negative impact on office is all related to residentialreal estate development.

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And the financial industry, it will come back from this. I thinkit's cyclical. They'll have layoffs and in a couple years they'llhiring again.

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