Forecast Optimistic for 2022 CRE – All Sectors

Despite a couple of pandemic-induced bumps along the road to economic recovery, a new survey from Allen Matkins/UCLA Anderson’s Winter 2022 Forecast California CRE Survey shows things are looking up for all sectors of commercial real estate (full results here, including not only industrial optimism, but also multifamily and retail optimism).

A key, differentiating finding from the survey is that this recession, unlike previous ones, was not belabored with slowdowns in the purchasing of consumer goods and little-to-no slack in housing markets.

Conversely, there is a continuing growth of multifamily development, as well as industrial space construction – both in planning and in motion. Further evidence of optimism is recent pessimism for retail and office construction is reversing. (The proverbial win/win scenario.)

A lingering factor, however, is the uncertainty about the workplace. The algebra shows companies wanting teams in the office for culture, loyalty, creativity and productivity. Workers prefer a mixed approach, with part-time in person and part-time working from home. 

Result? Renovation projects to address both sides’ needs, moving forward – either the remodeling of existing spaces, or creation of satellite offices.