After years of slow growth through a construction cycle that, historically speaking, should be headed for a downturn, developers in the commercial and multifamily building sectors are in uncertain territory. Many are already taking a more conservative approach to both and are preparing to shift resources toward other opportunities.
Mason Mularoni, senior research analyst in project and development services at JLL, says the office sector is “generally in a good place,” although with less volume under construction than during previous peaks. The commercial sector is eight years into the current “up” cycle, but, historically, cycles have lasted around seven years, he notes.