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Dr. Peter Linneman, Leading Economist, Professor Emeritus, The Wharton School of Business
The Walker Webcast
The Rise of Speculative Real Estate
There are three little pockets of speculative real estate. One is, as you know, there's a lot of office still being developed. They're making what would I call it? They're making a fair bet that even if the demand for office goes down, that the demand for high quality office will go up. The second place you see it is in multifamily, which is by definition speculative,. And much to my confusion and amazement, multifamily starts instead of dropping further over they rose. You talked to even more people in this in the industry than do I. It doesn't take long to build. So if you do overbuild, you shut the pipe down, pipeline down.
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