Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (21066)	5/28/2004 1:29:28 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

however... if there is enough supply that will satisfy the demand for quality properties, hen an equilibrium will be found.... BUT if supply does not meet demand.... then you know what happens.... the real question to ask is.... is there a need for the commercial buildings that are "on line"? There are some investors that feel when you reach 50 % occupancy (on new product) within 6 to 18 months... then the project is deemed a success... again... what level of risk? how much debt in which to incurr? it's hard for me to imagine a successful result with only 50% occupancy....in my area i see a number of commercial RE developments leased out to businesses that come and go, the buildings stand vacant for months on end, but as long as the anchor stores do ok, it seems not to be a problem... we just saw a new mall go in, and for example the stand alone circuit city vacated and moved to the mall....the old location will sit there for months, i'm sure of it...same thing with the gateway store just down the road....there was a very large "gordmans" that went out of business, but the sports authority next door seems to be sufficient rent to satisfy the investors. i don't think i see so much "overbuilding" in our area as much as i do new building in more desirable areas as the population migrates, but leaving a number of facilities vacant in the wake