LOS ANGELES-Early-stage commercial real estate development is coming back in the state. That was the finding of a recent Allen Matkins/UCLA Anderson Forecast survey that looks at commercial real estate industry sentiment in the first part of 2012.
About half of the respondents said that they are engaging in some form of development, quite a turnaround from when the recession was in high gear and development shut down. "We see the beginnings of a turn in the market and new office and industrial space construction," said Jerry Nickelsburg, a senior economist at UCLA Anderson.
The best news in the survey came out of the Silicon Valley, where development is the strongest. "That is far and away the golden child of California," said John Tipton, an attorney at Allen Matkins.
In other parts of the Bay Area, San Francisco has a tighter construction market, but redevelopment is strong. The East Bay's construction recovery is lagging the most in the area, which isn't expected to have a turnaround until 2014.
In the southern part of the state, Orange County has strong developer sentiment in the industrial sector because of manufacturing and warehousing. The development outlook for Los Angeles and San Diego is also gaining traction.
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