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Well ya know, we work everyday and, uh, sometimes it’s really confusing about what’s going
on. And I think it is, uh, important to understand that it’s just the real estate cycle. You
know we’ve been going through these for years and years and years and we’re just
in another one. Ya know we’ve just come out of the crisis phase of the real estate
cycle, where we’ve had falling values, declining rents, limited access to credit, and really
no development. And things are getting a little better. Now we’re going into what’s called
a “transitional phase”. The transition phase is where we’re gonna focus on development,
more government programs are gonna come out to, uh, help us out, to make credit more available.
We have seen consolidation of mortgage companies, consolidation of banks, and the conservative
underwriting. Well after this phase gets done, we’re gonna go into the growth phase, and
this may take awhile to get to us. But this is where we have resuming development activity,
rising rents, and lending becomes easier and we finally have some job growth. Then we’re
gonna have the “plateau phase” where we have the cap rates are gonna go down, we have
more demand than we do have supply, optimistic, optimistic underwriting comes back with increased
capital comes to the marketplace. These happen every ten years and it is just the cycle,
stupid.