LOS ANGELES-The twice-a-year Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows developers expressing optimism regarding commercial real estate market conditions. The survey projects a three-year ahead outlook for the state’s commercial real estate industry and highlights potential challenges.

The May 2013 results signify a continued recovery with an acceleration of growth in non-residential building until 2016 or 2017. After that, growth will continue, but likely at a somewhat decelerated rate, the survey says. Surveyed industry leaders anticipate a stabilization to occur between vacancy and rental rates as new office space is absorbed into the market. Multifamily markets will experience increases in development and demand, especially with those located near transportation hubs. Industrial markets are expected to remain healthy, but with limited growth due to lack of increased exports.

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