K-12 facilities, higher education and new civic properties will see strong new development activity in California this year. These asset classes were already leaders in development activity in 2019, and demand will continue to grow in the coming year.

New and improved K-12 facilities are needed throughout Southern California to serve the growing population," Karl Kreutziger, the president of C.W. Driver Cos., tells GlobeSt.com. "In addition, here's a significant push for higher education facilities to modernize their campuses in order to stay competitive and attract the best and brightest students. The increased focus on STEM is also driving a demand for new science, tech and health buildings. We're nearly complete with a new $70 million Center for Science and Innovation for California State University Dominguez Hills that is designed with the necessary mechanical, plumbing and electrical systems to facilitate instruction that prepares students for careers in STEM."

In addition to educational facilities, Kreutziger says that civic properties will also continue to see an increase in new construction. "There has been a strong push for cities to modernize their facilities to better serve the community while meeting energy efficiency goals," he says. "For example, we're nearing completion on a new zero net energy building for the County of San Diego's new Assessor, Recorder, County Clerk office in Santee. It is the country's first zero net energy archive facility, requiring special care to preserve delicate documents while still meeting the required efficiency goals to ensure the building is energy neutral. Cities across California are investing in forward-thinking projects such as these, which result in long-term cost savings and environmental benefits."

While fear of a recession is increasing, these assets won't be impacted by economic turmoil. "Because all of these sectors are funded by public bonds, potential dips in the market—or even fears of a future slowdown—are unlikely to have an impact," says Kreutziger. This is especially good news for C.W. Driver, which focuses on educational and civic properties. "

Overall, Kreutziger expects development will stay on par with activity in 2019. "We anticipate 2020 will be similar to 2019 as most projects have been secured for some time now, and the pipeline in Southern California is strong," he says. "The Architecture Building Index—a leading economic indicator—projects a positive outlook for development across the Western U.S. next year, and we don't have any reason to believe differently."

Instant Insights /

Civic, Education Among Top Assets for New Development in 2020

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