IE Business Daily Business news for the Inland Empire.
California’s commercial real estate market appears to be unaffected by the onset of the Trump Administration, according to a study released Wednesday.
The market, which was in good shape before the Nov. 8 election, appears to be following its “natural cycle” independent of the results of the presidential race, the Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey stated.
A recent rise in consumer confidence and stock prices, combined with the fact that the state is likely to maintain its heavy business regulations, might explain why the state’s commercial real estate market is static, said Jerry Nickelsburg, adjunct professor of economics at the Anderson School and a senior economist the Anderson Forecast.
The state’s commercial real estate market still faces several issues, including more people shopping online, higher interest rates and changes to the traditional office environment, Nickelsburg noted.
The report also noted that much of the state’s office market appears to have peaked during the current economic cycle, and that multi-family housing appears to be built out in much of the state.
That “status quo” market might not apply to the Inland Empire, said Jay Prag, professor of economics and finance at the Drucker School of Management at Claremont Graduate University.
Several factors, including uncertainty regarding the Trump Administration’s long-term trade policies, have caused the Inland Empire logistics industry to slow somewhat, Prag said.
Because the region is so dependent on logistics, that trend is likely to impact the region’s economy during 2017.
“I think we’re going to see a lot of development in California this year, but I don’t know how much of it will happen in the Inland Empire,” Prag said.
