- Land market for residential homebuilding has tightened to the point where the negotiation leverage is shifting to sellers; record-low apartment vacancy rates continue spurring apartment development, primarily in urban, core markets
- Agricultural land continues selling for a premium as high crop prices drive land values to new highs
- Build-to-suit and select speculative development are driving industrial land sales
- Retail developers are seeking smaller, in-fill redevelopment sites in prime locations
The Twin Cities land market is picking up momentum as its recovery continues. Developers are taking strong land positions, and in many cases, taking advantage of continued pricing discounts. However, the most highly sought-after in-fill sites for single-family, multi-family and retail development have pricing power.
Spurred by record-low apartment vacancy rates, multi-family housing developers are snapping up sites in core, urban markets but also are expanding their “bull’s-eye” to include first-tier suburban markets. National homebuilders are aggressively acquiring raw land in favorable communities with strong school districts. Industrial land activity is focused on build-to-suits for corporate users. Retail activity remains user-driven, with developers targeting prime, urban in-fill locations. Farmland continues selling for a premium as high crop prices drive land values to new highs.
To read more, visit the January 2013 edition of Cushman & Wakefield/NorthMarq’s Compass report, now available online. Visit the web site: www.northmarqcompass.com