Suppose your market research has revealed this information about a particular space market: 130,000 square feet of vacant space, 20,000 square feet of newly completed space just open for leasing, with 30,000 square feet of space are still under construction. If you expect the annual net absorption to be about 120,000 square feet. Would a developer who faces a construction period for new space of about 19 months be well advised to start a new project immediately?

Yes, because by the time he finishes, there will be no competing space in the marketplace.

No, because by the time he finishes, there may still be too much competing space in the market.

Yes. He should start now because he shouldn't let the supply run out in the market.

No, because it's too late and one would want his space when he finishes.