California office developers and financiers have worsening outlooks on the state's office sector after a coronavirus-induced recession and concerns about remote work, Allen Matkins and UCLA Anderson Forecast said in a new report.
In their latest California Commercial Real Estate survey, the law firm and forecasting group recorded worsening sentiments across property types, calling remote work's effect on the office sector in particular "an open question."
The biannual survey asks California developers and financiers in the office, retail, industrial and multifamily sectors about how well they predict their respective property types will fare in six of the state's biggest markets three years into the future.
The duo's report shows sentiments for office rental and vacancy rates in three years' time having been cut in almost half for markets like the East Bay Area, San Francisco, Los Angeles and Orange County compared to December.