As the industry continues to recover, new development is low, further reflecting a slowdown driven by shifting workforce patterns, such as hybrid or fully remote models. Limited new development is likely to lead to a future emphasis on the viability of retrofitting older office spaces to meet the demands of a more digital and modern workplace. In Northern California, office markets are adjusting to smaller, but more targeted demand, while in Southern California the picture is mixed. Spencer B. Kallick, a partner at Allen Matkins speaks to Pendulum Property Partners' Dan Wagman to analyze current and future office sector trends found in the Winter 2025 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.

With vacancy rates somewhat stable across the state, retail, residential, and other commercial functions are blending together, driven by consumer demand for convenience and offerings beyond traditional shopping. While malls and big box stores face pressure from e-commerce growth, there is demand for experience-driven spaces. Spencer B. Kallick, partner at Allen Matkins, speaks with Joey Miller, principal, The Runyon Group on the retail sector unveiled in the Winter 2025 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.