LOS ANGELES-Since last year, GlobeSt.com has given our readers exclusive access to the results of the Allen Matkins/UCLA Anderson Forecast, which breaks down how commercial real estate executives feel about how California’s major markets will perform in years to come. Click here to read the last report we distributed, in January, and watch accompanying video commentary.
Now, it’s your turn to voice your opinion. GlobeSt.com readers can voice their thoughts on the state of the state by participating in the survey, which focuses on the office and industrial sectors.
The survey comes in six parts:
John Tipton, an attorney at Allen Matkins, gave us some hints how he might be voting in the survey. "There has been a lot of recovery that has occurred," he told GlobeSt.com. "If you look at properties trading right now, in some of those markets, they are at 2007 pricing."
One of the reasons for all of the transactions is "incredibly cheap money." And investors aren't getting better returns (4.5% to 5.5%) in avenues other than commercial real estate, such as government bonds and the stock market. Plus, there is a thought that the economy will generally continue to improve.
Tipton revealed that the state's hottest office market in the recent past was the Silicon Valley, but San Francisco is starting to catch up. Industrial in the Silicon Valley has also gotten viewed favorably.
On the other hand, "Southern California is doing just fine," Tipton said. On the Los Angeles office front, the Westside is performing better than Downtown, but he pointed out that many more firms are considering locating their offices in the city center since its major revitalization.
The Inland Empire is still considered a region that is lagging, but that could change because of future development opportunities. “You can actually buy property there and build something,” Tipton emphasized.
On the overall state of the industry in the state, he said: "We have been in positive economic growth now since the second or third quarter of 2009. Obviously it’s not as robust as we would like, but it means, more jobs, goods and services."
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