Contrary to the single-digit vacancy forecasts of many commercial real estate firms, double-digit office vacancy rates will persist in Los Angeles through 1991, with annual demand declining by 1 million square feet to 4.3 million square feet over the next five years, according to economics researcher Austin G. Anderson.
Anderson, senior vice president of Economics Research Associates, West Los Angeles, conducted the study for the Building Owners and Managers Assn. (BOMA). It is published in BOMA's new 1987 Office Market Journal, available for $35 from the organization's office at 700 S. Flower St., Suite 418, Los Angeles 90017.
Another researcher, Selwyn Enzer, associate director of the USC Center for Future Studies, predicted that demand for single-family houses in the Los Angeles area will decline through the end of the century, while "small single-person occupancies and rentals" will increase as the population ages and young adults opt to live alone. Enzer's findings are also published in the Office Market Journal.
Two factors affecting office construction were the recently adopted tax reform bill and budgetary pressures preventing expanded high-tech defense spending, Anderson said.