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Why We Will Continue to Overbuild

Why We Will Continue to Overbuild

Chapter:
(p.210) Epilogue Why We Will Continue to Overbuild
Source:
From Boom To Bubble
Author(s):
Rachel Weber
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226294513.003.0008

After one of the worst financial crises on record, commercial construction appears – in 2014 - to be back with a vengeance. Developers have proposals in to add more than eight million square feet to the downtown Chicago office market. For many in the industry, the commercial overbuilding of the Millennial Boom is already a distant memory. Why does it seem as if we are destined to repeat the same mistakes from recent years? The epilogue restates some of the arguments from previous chapters and applies them with an eye toward the future. It proposes that as long as the professional routines that encourage overbuilding are still intact and capital is drawn to real estate from other asset classes, real estate will continue to cycle and developers will continue to overbuild.

Keywords:   real estate cycles, developers, financial crisis, professional routines

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