Teardown Post

From where we sit (Hinsdale, IL), the market for redevelopment property has improved.  Is this temporary - I don’t know.  What we do know is that those builders that have the capital (and courage) to undertake spec projects are capturing the existing business and have become the benefactor of any new business (building new custom homes for clients).  Activity seems to be breeding opportunity.  Maybe it’s time to peek out from under the desk, get some funding, find a price point in the marketplace that is void of good product and get back to work?

While price discovery is still in process.  We are seeing buyers begin to be more aggressive in their search for property.  In some cases, we clearly have seen the pendulum swing too far to the downside filling pricing gaps formed from the great “run-up” in prices from 2002-20051/2.  New price handles in the $200’s are being bought up quickly.  On the other end, and most surprising, some new construction projects - both for “spec” and custom are valued and trading at price points actually higher than during the height of the bubble - figure that out.

It’s not easy out there but, at some point we will look back and see where we bottomed.  We just may be there now.

  Brian

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