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Industrial Development Begins to Normalize

Winter 2023 Allen Matkins/UCLA Anderson Forecast California CRE Survey

2.08.23

While industrial remains a strong performer in the industry, the latest survey predicts that demand will remain strong but not increase at 2020 and 2021 rates in the coming years. According to the survey, two-thirds of Northern California respondents and more than half of Southern California respondents are planning at least one new industrial project in the next 12 months. While this is comparable to the Summer 2022 survey, the most recent survey results did indicate a slight decrease in development over the next three years.

“The biggest factor keeping industrial a hot market is continued e-commerce growth, which will drive high levels of demand in the industrial sector for the foreseeable future,” says Allen Matkins partner Seth Garrett. “Especially since the new supply has yet to match e-commerce demand in some markets.”

Click here for more videos and to download the Survey.

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