Office Shape Shifts | Summer 2024

New office development has come to a halt across the state and panelists expect they will be required to hold more equity in their projects over the next three years, but there is cautious optimism for vacancy rates in existing space. Among the Northern California panelists, only 5% of developers are planning to begin new office space development in the next 12 months but the three-year forecast for vacancy rates has improved. In Southern California, panelists believe that their markets are unlikely to get much worse over the next three years. Allen Matkins’ Erin Murphy, partner and chair, Los Angeles Real Estate Practice and Anthony Burney, partner and chair, San Francisco Real Estate Practice, dive into the outlook for the office sector as part of the Summer 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.