While Still Pessimistic, Retail Outlook Begins To Rebound

Following a continued decline into pessimism, retail may be coming back from the bottom of the cycle, according to the latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. The current view is that retail properties will be generating lower returns in 2024 compared to the end of 2021, but it does not mean the absence of solid targeted opportunities. New housing developments, whether they are multi-family or single-family, generally require nearby retail. The booming housing market will continue to generate this demand. Though the Survey responses on the surface suggest a continued decline in new retail property construction, the trend has indicated a possible turnaround and a new cycle beginning before the end of 2024.