TenantSee Weekly: A Game of Confidence
Commercial real estate, in all its many facets, has always been a confidence game. Developers make big financial bets their building will lease as they and their investors spend millions of dollars to build it. Then, they confidently sell the product, pitching its values to prospective occupiers against the backdrop of fluid markets. Ideally, they’ve underwritten the market correctly and it moves in their direction, meaning supply of comparable space diminishes, making the product more valuable. But sometimes the market is moving away from them, forcing them to maintain their confidence despite dwindling prospects for success.
