Across the board, the biggest concern for brokers next year isthe ever-decreasing amount of developable land for new productcountywide. Instead, infill projects that reuse the land willdominate the landscape, offering new sales and lease opportunitiesfor brokers to capitalize on. Still, the competition for thosespaces will be intense, with rents continuing their upswing andvacancy rates remaining low.

In the office sector, Jack McNutt, a SVP based in the NewportBeach office, believes the lull in the market of the past 30 dayswill dissipate, with things returning to normal after the first ofthe year. "The market will continue. It won't be robust, but itwill continue to clip along nicely," he says.

Although nearly five million sf of office and flex-tech spacewas built this year, the supply of quality class A product was hardto find. Next year won't be any better as four million sf ofproduct comes on line, with biotechnology, Internet-basedcompanies, financial services, telecommunications and othertraditional and high-tech companies competing to absorb the spaceat a brisk pace. Class A will be hard to find in the areasurrounding John Wayne Airport, the most expensive area in thecounty, followed by the south county area. Grubb & Ellis'recommendation: tenants should lock in lease rates for the longterm.