 2011-07 Dirt Cheap CCIM Magazine | [Dirt, cheap (CCIM Magazine July/August 2011)] | 1340 Kb | 0 Downloads | 7/27/2011 14:27 CST |
Matt Hudgins from Commercial Investment Real Estate July/August 2011 edition reports on the front page (see link to original article): "Dirt, cheap - Opportunistic Investors place their bets on land".
Some noteable Quotes from the article:
He predicts that development will come roaring back in primary markets this year as investors and developers race to deliver the first new projects. "This kind of window with little to no development in the U.S. is almost unheard of in the post-World War II era," Fasulo says. I'd be a land buyer right now. As they say, they're not making any more of it, and prices look reasonable versus a few years ago."
Looking Ahead: Demand for in fill sites already is returning in the primary markets, where asset values for stabilized apartments, retail, industrial, and even office properties are approaching pre-recession levels. The question is, when will that recovery occur for the rest of the nation?
REITs - especially apartment REITs - will begin a flurry of site acquisitions this year in a race to be the first developers to introduce new projects in pr imary markets, Fasulo predicts. Other investor types will follow that lead in the ensuing years and in other property types as demand recovers.
"Some of the land investors that really went out on a limb in 2009 and early 2010 have been vastly rewarded for those purchases already," Fasulo observes. "The smart money is in land right now."
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