According to the latest Allen Matkins**/ UCLA Anderson Forecast Commercial Real Estate Survey, there is sign of an optimistic turning point for the California Commercial Real Estate Industry for the year 2013.
This recent survey was conducted in November and December of 2010. This survey did provide confidence that there is a turning point for this industry in 2013. An earlier survey in June of 2010, indicated that there would be a turning point in the California Real Estate Industry in 2012. The result of the recent November/December 2010 survey is the possibility of a turning point in 2013.
In addition, according to the Allen Matkins/UCLA Anderson Forecast Industrial Space Survey for industrial space, there is similar optimism throughout California. Based on this survey, the Bay Area will have increased growth in the technology sector. The Los Angeles and Orange County areas, as well as the Inland Empire will also have increased growth, but not as significant as the Bay Area.
One of the reasons for this optimistic viewpoint is that commercial real estate does not follow the economy directly. The effect of an economic downfall or rise in the commercial real estate industry occurs later than the economy. As the economy begins to rise again, the commercial real estate industry will try to maintain speed. The Senior economist for the UCLA Anderson Forecast, Jerry Nickelsburg, indicated “After eighteen months of pessimism about office and industrial markets we have now seen six months of optimism.” Historic economic patterns also provide further evidence that this turning point may occur by 2013.
This optimistic viewpoint is very beneficial to a market where the delinquency rates for loans have been increasing. As companies continue to grow once again with their new found wisdom, they will make better decisions.
**The Allen Matkins Leck Gamble Mallory & Natsis LLP law firm was founded in 1997. This is a law firm is based in California and serves many of its counties and performs work in many different practices (i.e. environmental, intellectual property, taxation, and many more). The UCLA Anderson Forecast is often used and cited for the economic outlooks in California.
http://www.bizjournals.com/sanjose/news/2011/02/03/forecast-sees-commercial-real-estate.html