Neighborhood/community centers still maintain some interest with investors, yet, as with much of the retail market, the market may be overbuilt
There is a feeling in the industry that the future presence of an overbuilt
market may cause a strain on developers, leaving only the major players.
"There's a lot more than a handful of overbuilt
In contrast to its overbuilt
neighbor, the Metro Park/Woodbridge market is experiencing single-digit availability without any new construction in progress.
Obviously, the key to avoiding an overbuilt
market, before an organization expands its services to include assisted living, is to determine the need for more units in the local area.
He says the job reductions and consolidations have combined to make the overbuilt
office sector a higher risk sector.
Many professionals are already working hard to achieve fill-up in seemingly overbuilt
"There have been pockets of overbuilding in some submarkets of cities such as Philadelphia Chicago, Phoenix, and Dallas," he added, "but I would not describe any particular metropolitan market as overbuilt
"It's one of the few markets that won't be overbuilt
," he said.
Unlike the collapse of the market during the 1980s, there is little chance that the New York City market will be overbuilt
. Looking at vacancy rates prior to the recent and inevitable dot.com shakeout, if you add in all new commercial construction currently in the pipeline, the markets still in a state of equilibrium.
CareMatrix's stock, which is trading at less than $9 a share, is down 71 percent year-to-date following critical government reports about quality of care and consumer protection issues at assisted living facilities, and investor fears the industry may be overbuilt
Now, at the start of a new century, there is a sense among many lenders that the hotel industry may be overbuilt
. Consequently, there is a decreased appetite to fund even existing cash-flowing properties.