Office Development Stalls

The 2023 Summer Forecast shows that outlook on the office sector is resoundingly negative as respondents anticipate that both rental and occupancy rates will weaken in the coming year. As such, no significant office development is expected before the end of 2026. In Northern California, just 14% of the Forecast’s respondents have plans to start a new office project in the next 12 months, and there are no plans for new office development among the Forecast’s Southern California respondents. This sentiment is a steep decline from projections earlier this year, where 20% of respondents in Northern California and 29% of respondents in Southern California were planning new office developments.