Survey: Developers Upbeat About Commercial Real Estate Outlook

The Daily Transcript (August 1, 2019) A new Allen Matkins/UCLA Anderson Forecast report says while the commercial real estate economy is expected to be generally weak throughout next year, plenty of upbeat sentiment is to be had among developers of differing asset classes. The forecast reported San Diego's office sentiment climbed to 52.22 in June, indicating there isn't too much concern about the amount of future supply. "After a pause in 2021, our panelists see the office market picking back up in 2022," John Tipton, a partner with Allen Matkins, said in a statement. "My clients are getting requests for tenants to use space in a different way," Allen Matkins partner Erin Murphy said. "Tenants are looking to provide amenities for employees -- cafeterias, bars in their space, allowing dogs, gyms, fitness centers, sometimes daycare."

The retail sentiment in San Diego was only slightly pessimistic at 49.08 in June. Los Angeles was much more pessimistic with an optimism rate of 42.42, according to Allen Matkins/UCLA Anderson. "Owners and developers are figuring out retail," Allen Matkins partner Alain R'bibo said. "They have the formula now on what works. Consumers are drawn there not by what they are going to buy, because you can do that online, but more about how they're going to spend time."