LOS ANGELES—New construction throughout California will remain strong through 2017, according to the latest commercial real estate survey conducted by UCLA Anderson and Allen Matkins, GlobeSt.com reports exclusively. The survey shows new construction growth in the office, multifamily and industrial markets during this time period.

“There are three drivers of this growth. First, you have sustained employment growth, which leads people to have confidence that there will be positive growth in the future,” John Tipton, real estate development partner at Allen Matkins, tells GlobeSt.com “Two, you have an extended period now with low interest rates, which simply makes the cost of building more affordable. Third, and this is really related to interest rates, when developers look at rates of return on real estate relative to putting money in a bank account or bond, it is a much more compelling story.”

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