For the mortgage industry, things don't seem to be looking toogood. "One of the industries with the greatest hand in the currentrebound was the mortgage industry," says Mark Sullivan, regionalmanager and executive vice president for Studley in SouthernCalifornia. "But now in almost all submarkets there is space beingput back into the market that had been occupied by mortgage andservice companies. More space was taken by mortgage companies thanall other companies combined."

Sullivan notes that it is still too early to tell just how muchcorporate space that was previously occupied by mortgage companieswill be put back on the market. But increasingly high interestrates combined with Southern California's need for low-cost housinghas meant fewer refinancing opportunities--and fewer customers forthe mortgage industry.

"The lull has been predicted for about three years," says KevinHayes Sr., CEO of the Newport Beach office of Cresa Partners. "Butthere hasn't been any appreciable impact yet. Everyone's waitingfor the sky to fall, and there have definitely been signs that thesky may be falling as the housing market has begun to slow."