Pessimism for Retail Market Endures Despite Tax Overhaul: 2018 Winter/Spring Allen Matkins/UCLA Anderson Forecast

Though the tax overhaul was supposed to spur higher returns of investment throughout commercial real estate sectors, that does not seem to be the case in retail development. In fact, the panelists in each of the six California regions surveyed are more pessimistic now than they were before the tax bill passed. Though there have been reports of a strong holiday buying season for brick-and-mortar retail establishments this year, e-commerce and online retail business led by Amazon Prime is growing at a much higher rate. This trend continues to cause the closings of many California stores, including retailers Sears, Kmart, Walmart, Kitson, and Macy's, despite the fact that the economy continues to grow.

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