The second class of sellers will be developers who feel they have added what value they can to their properties. Abbott does not believe the market has peaked. Based on continued low vacancy rates and strong job growth, he opines the market will stay on this plateau at least during the coming year. Beyond that, it depends on vacancy rates, he added. To be sure, there are some troublesome issues on the horizon.
Interest rates continue creeping upward.
One developer, Joe Blattner of Tarragon, said the Endangered Species Act has hindered progress on some of this company's projects. And no one has unsnarled the region's traffic tangles. Surely the boom will go bust just as the Klondike and all other previous good times did. Perhaps this time, though, developers and financiers will cover their bets well enough to avoid the harsh consequences. As detailed in this special section, real estate experts are not ignoring the potential trouble.