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California  + Los Angeles  + Finance  | 

California Developers Rethinking Projects Amid Tariff Uncertainty

As tariff uncertainty reshapes global trade, the Summer 2025 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey reveals ripple effects cascading throughout California’s CRE landscape. The latest survey shows 36% of developers delaying or canceling CRE projects, citing increased construction costs and global trade tensions as key concerns.

Additionally, 85% of respondents now hold a more cautious outlook on new California developments due to tariffs and supply chain disruptions. Forty-four percent of developers expect distress levels in CRE capital markets to rise over the next year.

“Tariffs and lack of clarity on trade policies are certainly top of mind for real estate investors and developers as we head into the second half of the year,” said Allen Matkins partner Spencer B. Kallick. “This uncertainty is leading real estate developers and investors to think long-term about their development plans and shift their focus to opportunities and sectors that show resilience, particularly those aligned with e-commerce, logistics and residential.”

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Allen Matkins' Kallick

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Development
  • ◦Economy
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