"There is an economic slowdown going on, and it will have an impact on real estate, but different in different markets," says Phil Belling, principal of Layton-Belling & Associates. "The cost of money from the debt side is more attractive. But there is still some impact on prices on the sales side and some increase on the leasing side."

Unlike Northern California where tenant demand is very, very low, Rick Kaplan, SVP of Cushman Realty Corp. believes Southern California and Orange County, in particular, has learned a lot from the last cycle and, therefore, is not suffering the same fate.

"We're not overbuilt, vacancy rates are down. I don't know the impact that power is going to have yet. I think a lot of companies are concerned, but none of us really know how it's going to effect California," Kaplan says.

For moderator Bill Halford, president of Irvine Company Office Properties, what's missing most from the current marketplace is tenants, not product.

"The tenants are paralyzed now. The question is when will they become mobile again. I'm not sure rent adjustments are going to mitigate that. There will be some movements in pricing as landlords begin to try to explore what have to do to attract tenants. There's not a lot of prospects in the market."It depends on how soon going to have job formation again. As the market attempts to get into balance, we're seeing rents diminish. The formation of jobs and the mobility of companies is what it's going to take to get us back in a healthier real estate cycle. Orange County looks as good as anywhere. Relative to rest of country, this area still looks very good," Halford says.