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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.”
- ◦Development
- ◦Economy

