"There is a diversity of industries that make up the backbone of the corridor and they're not going anywhere," says Mark Schniepp, director of the California Economic Forecast Project and senior economist for the California Controller's office. The biotechnology company Amgen currently occupies four million sf in the Tech Corridor and other firms, such as the pharmaceutical company Baxter Industries, are looking to acquire property in the region, says Jack Hileman, president of the LA-based real estate development firm The Hileman Co. LLC.

The Hileman Co. is currently constructing a new addition to its Arbors of Thousands Oak complex along the Ventura Freeway near Wendy Drive. With completion of the 72,000-sf facility slated for September, Hileman remains optimistic about leasing activity at the project. "Although I see hesitancy in technology companies as far as commitments, I haven't seen a collapse in the market. Let's hope that by the third or fourth quarter, we are out of our nervousness about the economy and people are ready to make the commitment."

Eric Hasserjian, first VP at Arden Realty Inc., predicts that the area's vacancy rate will drop to 5% or 6% over the next 18 months. The current vacancy rate is at 9%, counting new product that is coming online. "That's a very healthy vacancy rate," says Hasserjian, who oversees the North LA region at Arden. "Things aren't bad, they just aren't at the feverish pace where they were."