LOS ANGELES-The commercial real estate market in Southern California is giving off the same mixed signals as the national economy, according to research from Newmark Grubb Knight Frank. But two executives from the firm say that areas of high office vacancy and stubbornly flat rental rates may represent more than the usual market fluctuations.

In fact, the two executives tell GlobeSt.com, sluggish office vacancy in some submarkets may represent a fundamental change in how much space is needed for collaborative work. It may reflect a new workplace that needs less employees, a more informal setting and non-traditional space adaptations, all of it potentially putting the brakes on any renaissance in traditional office growth.

“There's some significant changes going on,” says Chuck Hunt, the firm's regional managing director. He notes “there's a little bit of a battle going on” between traditional office space available and newer company needs. As a result, “a lot of the office landlords downtown are trying to be a little more creative in traditional office buildings.”

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