COMMERCIAL REAL ESTATE OUTLOOK LOOKING UP

The current Allen Matkins/UCLA Anderson California Commercial Real Estate survey, taken in May 2013, signifies a continued recovery of the real estate market in California with an acceleration of growth in non-residential building until 2016 or 2017.  Key findings from the report:

OFFICE: Optimism in the office segment remains strongest in the Bay Area, with surveyed real estate developers viewing 2016 as a year in which rental rates are expected to be superior to 2013. The survey indicates that growth in office space construction will continue at the same or higher rates as today over the next three years.

MULTIFAMILY: Los Angeles, San Francisco and Silicon Valley survey participants continue to be confident about the outlook for multifamily housing between now and 2016. More than half of the developers surveyed expect to begin new multifamily projects in the coming 12 months.

INDUSTRIAL: Survey results show that the pace of new additions for industrial space has moderated over the past six months. Only one-third of those surveyed in Southern California and two-thirds from the Bay Area expect to be engaged in developing projects during the next year, with planned additions expecting to meet demand by 2016.

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