California CRE Survey Confirms a Stalled Office Market, but Reveals Optimism in other Sectors

While office outlook turns decidedly negative, industrial growth is fueled by electric vehicle booms, housing demand keeps multifamily strong, and retail vacancies create opportunities

The 2023 Summer Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey ("The 2023 Summer Forecast" or "the Forecast") released today reveals that ongoing volatility in capital markets is creating new opportunities in commercial real estate. While sentiment on the office market turned decidedly negative compared to optimism in the sector a year prior, bright spots have emerged across the other market segments, with interest expressed in new development investments despite macroeconomic headwinds.

The Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey is a bi-annual survey that polls a panel of California's real estate professionals to project a three-year ahead outlook for commercial real estate and the macroeconomic trends impacting industry participants across the multifamily, office, retail and industrial markets.