Economy Goes South, But So May Office Rents
File this under Silver Linings: A wire report carried by The L.A. Daily News says that the economy is so bad that Los Angeles-area landlords may be forced to lower office rents. More durable and stable than gold prices, L.A. residential rents have long been impervious to downward adjustments, no matter how terrible the economy as a whole may become. The tidal wave of house foreclosures has only tightened the apartment-rental market, as more ex-homeowners are thrown onto the street.
On the other hand, office landlords, the report says, may be forced to cut rents by 30 percent soon. Too bad people who have been foreclosed aren't allowed to move into empty office buildings.