Office Optimism Tempered with End of Cycle Predictions

The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey's found a majority of office developers had a promising outlook on California’s coastal cities. Sentiment in the office space market remains highest in Southern California, likely due to the increased rate of job growth in the region and a tightening of office space supply. One in three of the Southern California panelists, including those from Los Angeles, Orange County and San Diego, began a new project during the previous 12 months, up significantly from less than one out of four surveyed in June 2015. Looking ahead, 42 percent of those surveyed in Southern California indicated that they would start one or more projects within the next 12 months.