Office Real Estate Market in Bay Area Showing First Signs of a Turn

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The 2016 Summer/Fall Allen Matkins/UCLA Anderson Forecast California Commercial Survey presages a new topping out of the market for office space in the future. For each of the six markets surveyed (San Francisco, the East Bay, Silicon Valley, Los Angeles, Orange County and San Diego), the trend in office developer sentiment since its peak in 2014 has declined. This downward trend occurs as developers become more pessimistic about the growth of real rental rates and vacancy rates.

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