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Under development in technology-driven markets
Development in technology-oriented markets, for the most part, is unlikely to lead to oversupply, experts agree.
“There doesn’t seem to be any looming oversupply,” says Colin Yasukochi, director of research and analysis with CBRE.
“I wouldn’t say that there’s so much development going on that that’s likely to tilt the market into a supply-driven downturn,” says Eric Yopes, a principal with Embarcadero Capital Partners.
Not only that, but the risk of overbuilding remains largely market- and submarket-specific, notes Adam Ruggiero, associate director of research with MetLife Investment Management. “We continue to monitor less supply-constrained primary markets, but overbuilding remains a relatively minor concern,” says Ruggiero.
And most development is pre-leased, with very little being built on spec, which reduces the danger of “see-through buildings” — newly developed space sitting vacant.
“We see a lot of developments g