Is Overbuilding a Threat?

Comments by: Andy Deckas Chief Investment Officer Opus Corp. Minneapolis

So, is overbuilding a threat? Yes, say 67% of respondents to last week’s Feedback Poll, but don’t bite your nails waiting for the return of the see-through building. It’s only 14% who believe overbuilding will hit straight across the board–in all sectors and markets. The majority say it will be a spotted phenomenon–cursing certain sectors only. By the way, an optimistic 19% say it won’t be a problem at all. Commentator Deckas weighs in on the side of the realistic 67. Here’s why.:

“The key was the response that mentioned certain sectors and markets. We’re active in more than 35 markets and just about all the main property types, and the one people worry about the most is housing. There are several markets–the notable ones, Florida and Vegas–that probably are already overbuilt.