California Commercial Real Estate Affected Negatively by Pandemic Through 2023

Developers Pessimistic Across all Markets, with Industrial and Multi-Family Only Moderately Affected. In the wake of the current pandemic-induced economic recession, the Summer 2020 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows uniform pessimism and a drop in sentiment for developers across all commercial real estate spaces in 2023. The biannual survey projects a three-year-ahead outlook for California's commercial real estate industry and forecasts potential opportunities and challenges impacting the office, multi-family, retail, and industrial sectors.

Overall, survey panelists see office market demand decreasing due to work-from-home policies, industrial only moderately decreasing due to the shift to online shopping, retail continuing its downward spiral, and multi-family only moderately decreasing due to the continued shortage of housing across the state.