In the general equilibrium framework, property rental rates should be adjusted to a level that eliminates all vacancy. However, several researches' proposal that the cause of volatile rental market cycles is developers' reluctance to reduce rental rates to eliminate excess supply is an implication that rental rates are normally sticky. This paper attempts to provide explanations to such situation using developers' construction strategic game. We show that when existing inventory and vacancy are considered, the rental rate that eliminates all supply is actually sub-optimal. Rather, developers will consider rental rate, which will be realized upon development completion (second stage), when they decide the optimal time to exercise the option to build (in the first and third stage). The consequence of this three-stage model is that developers will keep on building and collude to a sticky rent.