Survey: Development Sentiment Strong Despite Growth Concerns

San Diego Business Journal (July 21, 2016) California commercial developers generally remain optimistic about prospects for new projects through 2019, though there are concerns about a potential slowdown in economic growth, according to the latest statewide survey from UCLA Anderson Forecast and the law firm Allen Matkins. Researchers regularly survey a panel of California real estate professionals involved with development and investment, to capture market sentiment about industry prospects for the next three years. Panelists include experts from San Diego, Orange and Los Angeles counties, along with San Francisco, the East Bay and Silicon Valley. Researchers said interest in building new office space is holding steady in San Diego and the other markets, though overall sentiment has declined from its 2014 peak. Some developers have become more pessimistic about statewide prospects for growth in rental and occupancy rates, though feedback from the Southern California panels indicates markets will generally remain the same three years from now.