Tariffs Aren’t Impacting Developer Sentiment

GlobeSt.com (July 25, 2018) “Steady-as-she-goes” is the way John Tipton of Allen Matkins ;describes the developer sentiment in the latest Allen Matkins/UCLA Anderson California Real Estate Survey. The semi-annual survey shows healthy development optimism throughout California in most of the major asset classes: office, multifamily and industrial. Retail optimism leaned more pessimistic, but showed an uptick in certain markets, which could mean the pendulum is swinging. The survey was conducted in June, before some major tariffs were announced in early July; however developers had shown concern about the tariffs and the potential for a trade war. “There is an element of uncertainty here,” says Tipton. “No one knows if this is a situation where both sides will reach a reasonable negotiated settlement or if they are going to dig in, in which case there could be more material economic consequences in the near term.”