Report: Bay Area Developers See Headwinds in Housing Market

San Jose Spotlight (August 7, 2019) A new report forecasting the real estate market in California shows a fairly sunny outlook for the Bay Area, though it notes the region may be facing some headwinds where it matters most: housing. The report, called the Commercial Real Estate Survey, is released semi-annually by prominent California law firm Allen Matkins and the UCLA Anderson School of Management to gauge how developers feel about the market looking three years to the future. It tallies the types of projects developers plan to build in the coming years based largely on lease rates versus expected vacancy. “Whether we see a return to optimism in six months, I’m really interested to see because fundamentally the demand is there, but there are certainly headwinds,” said John Tipton, a partner at Allen Matkins. “Obviously markets are dynamic, so six months from now people might have a different view of what they’re seeing three years out, but this is their intent now,” Tipton said. “It has been a fairly accurate predictor of people’s actions following through on their intent.” Read More