Originally Posted by Dale
I guess I still don't understand why developers place a huge premium, on being first out of the chute, we they know full-well they'll still have to compete, for tenants, with projects that broke ground later.
It's not a huge deal, but developers want to be the first to get occupancy because it makes the leasing much easier. Office buildings take a long time to build so most tenants would rather take the building completing in 2016 rather than 2017.
As well in most markets (Calgary seems to inexplicably defy this) there is a finite demand for space, so if you are the first to market, you can snap up the majority of the good tenants while the later to market buildings are left with the scraps. This is less pronounced in Calgary due to the near insatiable demand, but there are still better tenants than others and they will often get scooped up first.