By Elise Anderson
California’s steady recovery is reflected in continued optimism and construction, according to the Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey released today, January 28. Robust job growth coupled with increased consumer confidence is fueling demand for construction of commercial office space, multi-family housing projects, and additional industrial warehousing space through 2017 in six major California markets.
The Matkins/UCLA survey polled a panel of California real estate professionals in the development and investment markets, on various aspects of the commercial real estate market. The survey, initiated in 2006 by California-based law firm Allen Matkins and theUCLA Anderson Forecast, is designed to capture incipient activity by commercial real estate developers. To achieve this goal, the panel looks at the markets three years in the future, and building conditions over the three-year period.
“The forecast is optimistic for commercial real estate once again, and is expected to remain solid for the next few years,” says Jerry Nickelsburg, adjunct professor of economics at UCLA Anderson School of Management and senior economist with UCLA Anderson Forecast. “Developer sentiment in general is buoyed by a recovering economy, job market growth and increased imports through California ports.”
The survey results are leading indicators of future commercial construction in California. An analysis of the three-year outlook for real estate development activity provides insights into new, not-yet-on-the-radar building projects and improves the quality of current information and forecasts of commercial real estate.