Question · Q3 2025
Amy inquired about the concentration of remaining deliveries and lease-ups from the current supply cycle (urban versus suburban) and where future developments would likely concentrate if interest rates continue to decline and development activity increases.
Answer
Matt Birenbaum, Chief Investment Officer, indicated that for the next year, more deliveries are still expected in urban sub-markets than suburban, although the gap is narrowing. He noted that current development economics favor suburban sub-markets, but entitlements are more challenging there. He also mentioned that cities are increasingly incentivizing adaptive reuse of outdated office buildings to multifamily in urban cores, which could lead to quicker supply materialization.