Office Construction Stays Neutral in 2018

John Tipton is an operating partner at Allen Matkins.

Investment sentiment for California office product is soaring, according to the latest survey from Allen Matkins and the UCLA Anderson Forecast. While investors are becoming bullish on office product in all of the major submarkets, developers aren’t as bullish on new product in some markets. Overall, new construction this year will stay neutral, with activity healthier in some areas than others.

“In Northern California, more developers are staying on the sidelines when it comes to construction,” John Tipton, a partner at Allen Matkins, tells GlobeSt.com. “In Los Angeles, however, developers have been more bullish.” This isn’t surprising considering that sentiment in Northern California only recently rebounded, driven largely by the new tax plan. In the last survey, taken six months ago, investment sentiment was down in Northern California. As demand increases, development could rebound as well. In Los Angeles, sentiment remained positive.