10-24-2023, 08:54 AM
(10-23-2023, 01:12 PM)CP42 Wrote:(10-23-2023, 01:10 PM)ZEBuilder Wrote: Spec building is just the developer building on speculation, a lot of the time that is how office developments are built, the developer will build the building purely speculating that the market will require more office space, likewise in residential it just means that all the units haven't been sold yet so they are building it speculatively expecting future demand to require it.
Is that uncommon in today’s market? I thought I read recently that most projects want to achieve around 70-80% of sales prior to beginning construction.
80% is fairly common but that amount covers construction debt so less 'speculative' I'd call it building on spec when you're only <50% sold