Report: California CRE Industry Optimistic Despite Uncertainty

The Summer 2022 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey reveals there is much more optimism about the next three years than the negative macroeconomic news might suggest. Sentiment for office and retail sectors remains one of confidence for the longer-term, however, industrial and multi-family optimism has tempered a bit compared to six months ago.

The biannual survey of California commercial real estate professionals projects a three-year ahead outlook, and not surprisingly, the persistence of COVID-19 has dampened spirits, especially when combined with near-term economic headwinds. Nonetheless, the office market optimism in the Bay Area has remained slightly positive, as many experts consider this a temporary situation.

Retail sentiment continues to rebound, aside from the San Francisco and Los Angeles urban centers. Expectations are that a turnaround for retail development throughout the state should begin by 2025, thanks to increased housing demand, Meanwhile, sentiment for the industrial and multifamily sectors have been consistently positive, but slightly less so than the last survey.