Home Markets Office Developers Signal an Upward Turn in the Market | Allen Matkins

Office Developers Signal an Upward Turn in the Market | Allen Matkins

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[co-author: Kevin Shannon]

While the question, “what is the future of the office building?” is still on the minds of everyone who owns or develops office space, it has become clear that the latest return-to-office activity has our Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey panelists becoming less pessimistic. Although the office sector sentiment in the most recent Survey remains negative, it is becoming less so and it appears that this sector has bottomed and is ready for a possible upturn. The current lull in office construction could be short-lived as the demand for office refitting, low-rise office buildings, and growth in employment increase over the coming year. The Survey reflects that developers are taking less of a wait-and-see approach providing an early signal of a turn in the market. As workers return to the office, the demand for the amenity-rich office should push construction activity higher than…

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