California CRE Survey Finds Adaptive Reuse of Office Buildings is on the Rise

The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows that 21% of California real estate owners plan to redevelop office space for other uses. The office sector is expected to continue underperforming, with declining development and increasing vacancies. Retail is expected to rebound, while the industrial sector remains relatively healthy. Multifamily development is declining due to high interest rates and rising construction costs.