Despite a looming recession and continued economic uncertainty, retail sentiment continues to rebound from the bottom of the cycle. The latest Survey indicates optimism in most markets aside from San Francisco and Los Angeles, where pessimism continues due to many people continuing to work from home and a lack of foreign tourism. In the other markets, a limited return to the office has increased the demand for retail in the core of each city, while the building of new housing throughout California has created a demand for new retail close to that housing. There is also expected to be a demand for the reconfiguration of retail establishments to a more open-air, post-COVID concept that will attract consumers back to stores. The booming housing market will continue to generate demand for retail throughout the state, leading to a turnaround in retail development and a new retail building cycle that should begin before the end of 2025.