SAN FRANCISCO—In the wake of the pandemic-induced economic recession, there is uniform pessimism and a drop in sentiment for developers across all commercial real estate spaces. The biannual/summer Allen Matkins-UCLA Anderson Forecast California Commercial Real Estate Survey projects a three-year-ahead outlook for California's commercial real estate industry, and forecasts potential opportunities and challenges impacting the office, multifamily, retail and industrial sectors.

Survey panelists see office market demand decreasing due to work-from-home policies, industrial only moderately decreasing due to the shift to online shopping, retail continuing its downward spiral and multifamily only moderately decreasing due to the continued shortage of housing across the state.

"Overall, although it's not surprising that people are more pessimistic than last survey, there are some silver linings in areas such as multifamily and industrial," John Tipton, Allen Matkins partner, tells GlobeSt.com. "I look forward to seeing where things are at the end of the year when we survey again. We're certainly rooting for the optimistic outcome."