For the mortgage industry, things don't seem to be looking too good. "One of the industries with the greatest hand in the current rebound was the mortgage industry," says Mark Sullivan, regional manager and executive vice president for Studley in Southern California. "But now in almost all submarkets there is space being put back into the market that had been occupied by mortgage and service companies. More space was taken by mortgage companies than all other companies combined."
Sullivan notes that it is still too early to tell just how much corporate space that was previously occupied by mortgage companies will be put back on the market. But increasingly high interest rates combined with Southern California's need for low-cost housing has meant fewer refinancing opportunities--and fewer customers for the mortgage industry.
"The lull has been predicted for about three years," says Kevin Hayes Sr., CEO of the Newport Beach office of Cresa Partners. "But there hasn't been any appreciable impact yet. Everyone's waiting for the sky to fall, and there have definitely been signs that the sky may be falling as the housing market has begun to slow."
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
