The Winter 2023 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows that commercial real estate developers, owners, and investors have reverted to a less-than-confident outlook on most market sectors, especially with office space development. The industrial market continues to thrive despite bracing for more “normalcy” in vacancy rates, multi-family remains bullish with the ongoing demand for new housing, and retail is still rebounding. However, the tempered survey responses indicate the California commercial real estate industry continues to navigate rising interest rates, declining valuations, and economic uncertainty. This all has resulted in a contraction of projected commercial development across most asset classes.