Indeed, this will be the first year since 1990 when the marketis not as strong as it was in the beginning of the year, accordingto the report. Most of the softness is taking place along thelarge, southeast suburban market, where most of the overbuilding istaking place, the report says.
"It's anticipated that the economic slump will cause asignificant drop in the number of potential purchasers, which inturn will create less demand and competition and consequentlyminimize the buying frenzy that has developed over the pastdecade," Grubb & Ellis says.
But even if the number of buyers drops 20% to 30%, there are sofew institutional-quality apartment communities on the market thatthere will still be groups bidding on them, the report says.
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