February 13, 2019
Despite the recent uncertainty in the stock market, increasing cap rates, and slower economic growth, developers’ views on California commercial real estate markets have not changed much from six months ago. The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey indicates industrial space remains hot despite the economy’s fluctuations, multifamily housing remains strong in most markets, office has reached its peak, and retail markets continue to struggle, largely reflective of the trends of the past two years.
Allen Matkins’ John Tipton says, “Industrial remains the brightest star.” He points out that it is harder to find “cheaper dirt,” which constrains supply while demand continues to “boom.”
Industrial space is the only market still trending upward, of the three major non-residential real estate markets. This is caused by the same online shopping trends that are hurting the retail market, as well as a continued increase in imports. In 2019, real personal income growth in California is expected to hold up and support the current industrial space expansion, which is dominated by warehousing and distribution centers.
Watch the video below to hear additional industrial insights from the survey.
For comments, questions or concerns, please contact Dennis Kaiser