During the expansion phase, the market is on the upswing in terms of growing demand for space. From a macroeconomic perspective, GDP growth is back to normal levels and quarterly job growth is strong. Occupancy rates are improving and rents are on the rise. Rents now approach levels that can justify new construction, and in certain very tight markets, surge ahead at breakneck speeds. Development activity begins to return during the expansion phase. There also is a high point during the expansion phase – the crest of the wave – where supply and demand is in equilibrium.

^{Source: Crowdstreet.com}