The slow return to office trend has been felt up and down California, as many employees continue to work from home, while some business remained completely shuttered. However, the Summer 2021 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows that Californians have a palpable urge to return to normal.
According to the report, while both office and retail development have been cut back, panelists predict that the current pessimistic cycles for both sectors have hit their respective bottoms, and that those markets will soon turn due to increasing demand. This tool surveys commercial developers and commercial financiers for insights into their markets, as well as three year projections.
Multi-family housing and industrial space remain strong. In fact, 57 percent of survey respondents predict that multifamily housing demand will grow faster than supply in the next three years.
Nearly 70 percent of Southern California respondents have one or more multifamily projects slated for this year.
On the office front, survey respondents largely predict a full return to the office by fall. With that, Kevin Shannon, Co-Head of U.S. Capital Markets for Newmark, predicts that we may even see companies requiring more space per employee.
“I am not aware of a single company that has said because of a newly adopted hybrid work model that offices will be shared. Employees still want their own office even if they are only planning on being there three or four times a week,” Shannon said. “There will definitely be less hot-desking concepts and more space per employee initially, although that could change over the years as we create more distance from this pandemic.”
For more on the survey, click here.