IE Business Daily Business news for the Inland Empire.
Thirty six percent of California developers are delaying, or have cancelled, commercial real estate projects due to higher construction costs and concerns about global trade, a study has found.
Eighty five percent say they’re more cautious about commercial development in the state because of supply chain disruptions, and 44 percent of developers expect California’s capital markets to become more tumultuous during the next 12 months, according to a survey by the Allen Matkins/UCLA Anderson School of Management.
Released Aug. 6, the study shows how developers, tenants and investors are adjusting their operations because of higher costs, changing demand, and uncertainty about the geopolitical climate.
“This uncertainty is leading real estate developers and investors to think long-term about their development plans, and to shift their focus to opportunities and sectors that show resilience, particularly those aligned with e-commerce, logistics, and residential,” said Spencer B. Kallick, a partner at Allen Matkins, in a statement.
On the positive side, e-commerce is once again a major player industrial development, with 41 percent of those surveyed calling it their top growth driver, the report found.
