360 State - Real Options

In 2010, developer Bruce Becker (SOM ‘85) completed 360 State Street in downtown New Haven, a 32-story high-rise with 500 apartments, a parking garage, and a grocery store on the street level. Just west of the apartment building on the corner of Chapel and Orange Streets, a 6,000-square-foot pocket of land from the original parcel remained undeveloped. In the summer of 2013, Becker had a number of alternatives to consider in regard to the site. He also had no obligation to build. But Becker worried about losing out on rents should he wait too long. Under what set of circumstances and at what time would it be most advantageous to proceed?