California developers show signs of pessimistic concerns
California commercial real estate continues to strive, but hints of slowing economic growth are a possible concern, according to the Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. The biannual survey projects a three-year-ahead outlook for California’s commercial real estate industry and forecasts potential opportunities and challenges affecting office, multifamily, retail and industrial sectors.
For each of the six markets surveyed (San Francisco, the East Bay, Silicon Valley, Los Angeles, Orange County and San Diego), the trend in office developer sentiment has declined since its peak in 2014. This downward trend occurs as developers become more pessimistic about the growth of real rental rates and vacancy rates.
For the Southern California panels, sentiment has weakened slowly, with the survey indicating markets will remain the same three years from now. The interest in building new office space has held steady, and the