The annual report by the UCLA Anderson School of Business alsopredicts that the number of nonfarm jobs will grow 2.6% in 2001even as the nationwide job market starts to cool. The Inland Empireof Riverside and San Bernardino counties will see even stronger5.2% job growth, as more businesses move eastward to lower theirreal estate costs.

"This is a truly stellar performance, particularly when yourealize that we didn't grow at all for the first half of the1990s," says Rajeev Dhawan, director of econometric modeling atUCLA and author of the survey.

The annual UCLA forecast is one of the most widely anticipatedevery year, in part because of its depth and track record foraccuracy. But while Dhawan says solid job growth in 2001 shouldkeep demand for office and industrial space high, his figuresindicate that owners of Southland retail developments might be infor a slowdown.