Hypersupply
The phase of the real estate cycle in which demand is cooling but buildings started during the prior expansion phase are still finishing construction and delivering space. Vacancy rises and rents soften even though the buildings under construction cannot be stopped. Hypersupply typically lasts 12-24 months from the first signs of demand softening through the last delivery of in-construction inventory; the rent declines that follow are baked into the cycle by the construction lag and cannot be undone by short-term policy shifts.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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