Industrial & Multifamily Remain the Bright Spot in the Winter 2013 Survey Results - Allen Matkins/UCLA Anderson Forecast Winter 2013

INDUSTRIAL: Industrial markets had positive forecasts in all regions, due in part to anticipated increases in California exports driving demand for distribution and manufacturing space, particularly from China and other Asian markets.

MULTIFAMILY HOUSING: The survey indicates that multifamily development continues to boom with increased housing demand and decreasing vacancy rates of 4.5 percent in multifamily markets. This turnaround in multifamily residential construction is being driven by high occupancy rates and rising rents, particularly in the Bay Area, as household formation begins to rebound in California.