LOS ANGELES-The future of California industrial commercial real estate in the next few years looks brighter than the office market. This is one of the findings of past Allen Matkins/UCLA Anderson Forecasts that have been covered by GlobeSt.com. Click here to read the last report we distributed, in January, and watch accompanying video commentary.
This year, GlobeSt.com readers get a chance to weigh in on the survey and make an impact on the results. The main goal of the exercise is to figure out where California real estate will be three years down the road, when projects currently in the planning phase will begin to come to fruition.
The survey, below, comes in six parts:
Jerry Nickelsburg, a senior economist at the UCLA Anderson School of Management, contends that sentiment in past surveys has been more in favor of industrial development across the state than office. "Industrial space looks to be the leader," he said. "We're seeing warehouses that were leased, but not fully utilized now fully utilized."
Perceived industrial demand in years to come is seen state wide. Even the Inland Empire, the region hit the hardest by the recession, is expected to see an influx of industrial construction.
That doesn't mean that the office market in the state is poorly perceived. The Silicon Valley and San Francisco are clearly hot office markets that are expected to see increased demand mainly due to the technology industry. "[Survey participants] see a demand for more office space than currently exists," Nickelsburg said.
There are also strong expectations for Los Angeles. Nickelsburg sees an influx of legal, tech and design jobs coming to the city. The Westside is especially attracting tech and entertainment positions. "They see a market which is going to be a tighter market than today."
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