Allen Matkins/UCLA Anderson Forecast California CRE Survey Shows Interest Rates and Uncertain Economy Weakens Outlook for Most Market Sectors
LOS ANGELES , Feb. 8, 2023 /PRNewswire/ -- The Winter 2023 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey, released today, shows that commercial real estate developers, owners and investors have reverted to a less-than-confident outlook on the office sector as rental and occupancy rates continue to weaken. This sentiment is a departure from the optimism shared by many in the sector a year ago. The findings come as the commercial real estate industry continues to navigate rising interest rates, declining valuations and economic uncertainty, leading to a contraction in new commercial development across most asset classes.
- The Winter 2023 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey, infographics, videos and related content are available for download on February 8, 2023, at 2:00 a.m. Pacific Time.
- However, those expectations did not materialize according to the latest survey, as 2022's high interest rate environment impacted office market fundamentals.
- The uncertain outlook on office space is also influencing sentiment about multifamily performance in metropolitan markets.
- As such, interest rates and inflation won't create a huge impact on land use entitlements and development," says Spencer Kallick, partner at Allen Matkins.