Calif. Commercial Real Estate Will See Pandemic-Driven Impacts Through 2023: Survey

Commercial Observer (July 29, 2020) Commercial real estate developers and investors in the Golden State have gloomy and dismal expectations that almost every sector will be negatively affected by the pandemic through 2023, according to a new survey released today. The Allen Matkins/UCLA Anderson Forecast survey for California shows “uniform pessimism” across all markets, and a drop in sentiment for developers across all commercial real estate spaces through 2023. Panelists see retail continuing its downward spiral, and office market demand decreasing due to work-from-home policies. John Tipton, partner with Allen Matkins, said it’s important to remember the survey was taken in the middle of a pandemic, and the timing dovetailed with the reopening of the economy, the recent civil rights movements, and resurgence of coronavirus cases. “A pandemic is bad enough,” he said. “The economy was going great [before the outbreak]. And there was really no reason to stop other than a kind-of black swan. Well, a black swan happened. It’s called a pandemic. So you get this incredible forced reduction immediately.” Read More (subscription may be required)