CALIFORNIA BUSINESS MINUTE
Commercial Real Estate Survey
07-28-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
Optimism is returning and a “distant glow of light at the end of the tunnel” is
nearing in the California office and industrial markets, according to the latest
Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey and Index
Research Project. The survey includes the Inland Empire, East Bay, Silicon Valley,
Los Angeles, San Francisco, Orange County and San Diego office markets. The survey
compares the panel's forecast of the market three years hence with today's market.
“After eighteen months of pessimism about office and industrial markets we are now
seeing indications that, after the markets hit bottom later in this year or early
next year, they will follow the pattern of increased non-residential construction
coming two to three years after the end of the recession rather than the pattern
of multi-year stasis in this sector,” said Jerry Nickelsburg, senior economist,
UCLA Anderson Forecast, and author of the survey results report.
The Allen Matkins/UCLA Anderson Forecast Survey of Industrial Space Developers,
now beginning its second year, shows surprising optimism about 2013 industrial
markets. “The optimism is somewhat greater in Los Angeles and Orange County possibly
reflecting the current strength in manufacturing in the early days of this post
recession expansion,” the report states. “Consumption spending is growing at a slow
pace and growth in consumption is the key ingredient for an improvement in warehouse
usage. Nevertheless, all markets are seen by our panel as having higher rents and
higher occupancy three years hence.”
The Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey
and Index Research Project polled a panel of California real estate professionals
in the office space, industrial space and investment market, and asked a series of
questions on various aspects of the commercial real estate market. It was initiated
by Allen Matkins in 2006, furtherance of their interest in improving the quality
of current information and forecasts of commercial real estate.
For a copy of the latest Allen Matkins/UCLA Anderson Forecast California Commercial
Real Estate Survey and Index Research Project, please visit www.uclaforecast.com.
I am Tim Johnson and this has been the California Business Minute.
|
