Looming Job Cuts:

May be the word “doom” just brings out the pessimist in people, but 66% of respondents answered this week’s Quick Poll on the side that believes job cuts will “Spell Doom for the Office Market” versus 34% who say they “Won’t Have a Vacancy-Rate Impact.” Jeff Osborn, a managing director of CB Richard Ellis’ Anaheim office, sees the glass at half cycle—in short, his take is that things may get worse, but they will eventually get better. <pNo doubt rising unemployment is going to have an impact on the office market. I wouldn't be in the camp of saying its doom and gloom only because I've been in this business 22 years. When I started out in Orange County, there was approximately 50 million sf of office space and vacancy exceeded 20%. Today we have a base that's approximately 100 million sf—it's doubled—and we have a 15% vacancy.

Down cycles are very common in our industry, but we always come out of it and markets do turn around. Doom and gloom sounds like scorched Earth and the end of the world. I would have to say I wouldn’t go that far.

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