Bob Champion doesn’t use the word recovery. Instead, the president of Los Angeles-based
Champion Real Estate Co. sees today’s conditions as drifting back down toward earth.

“The industry is not ‘recovering,’” he told CPE. “Instead, it is coming to grips with the re-
ality that growth will be very slow, only occurring in specific niches, while at the same time
the industry will continue to deleverage.”

Regardless of terminology, however, most experts agree that the economy is beginning to gain a little more solid ground under its feet. This begs the question: Does stabilization translate
into larger leases?

According to Champion, the companies that are most confident in terms of taking space are those who not only have demonstrated the ability to profit in the present environment, but also
recognize that today’s values may not be available tomorrow. “(Users who) recognize that they will be growing are locking up space on terms not seen in eight years,” he said.

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