| The Winter 2023 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey released today shows that commercial real estate developers, owners, and investors have reverted to a less-than-confident outlook on the office sector as rental and occupancy rates continue to weaken. This sentiment is a departure from the optimism shared by many in the sector a year ago. The findings come as the commercial real estate industry continues to navigate rising interest rates, declining valuations, and economic uncertainty, leading to a contraction in new commercial development across most asset classes.
The bi-annual survey polls a panel of California’s real estate professionals to project a three-year ahead outlook for commercial real estate and the macroeconomic trends impacting industry participants across the multifamily, office, retail, and industrial markets.
“With the Winter 2023 Survey findings pointing to uncertainty as the prevailing sentiment in the commercial real estate community, we are advising clients to engage with business partners today so that they are prepared to capture the upside of a dislocated market,” said Allen Matkins partner John Tipton. “It is more important than ever that the commercial real estate industry embrace the changes of a post-COVID world to continue to play a crucial role in enabling the national economy.” |
