On the surface, the ULI “Emerging Trends in Real Estate 2010” report paints a grim picture for the immediate future of land development. ULI suggests that you “hit the links” and shift your focus to property management. Here are a couple of other quotes from the report:
“Write off the year, as well as 2011 and probably 2012”
“Forget about construction financing – that’s a pipe dream.”
Not the most encouraging news, but I think it is important that we keep a realistic outlook on our future. That’s exactly what this report is. It’s not sugar coated or unrealistic in its projections.
The future also holds great opportunities and room for some positive news.
New development is probably a dream but there are great opportunities to buy distressed deals and it seems that we are starting to see some of those deals come to the table. If you are cash rich, you are in a great position. Goldman Sachs reports $4 trillion sitting on the sidelines ready to invest.
Included was a small paragraph titled “Dream about the Future”. This excerpt stuck with me after reading the report. While ULI suggests that you put your development ideas on hold, you should still be dreaming and planning for future projects.
The paragraph lists many of the same building trends that I have discussed here on Idea Views these past few months. I love the tone of this section. It’s not overly encouraging, but encourages developers to be proactive with their planning.
Some of the aspects we should be thinking about include urbanizing suburbs, close proximity to mass transit, smaller housing units, and reduced energy expenses. ULI puts it bluntly, “You’ll be stupid not to build green”, and I agree strongly.