Land Market Driven by Demand for Raw Residential Tracts, Multi-Family Urban In-Fill, Industrial Build-to-Suits and Select User-Driven Retail

  • 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

About Cushman & Wakefield/NorthMarq

​Cushman & Wakefield/NorthMarq is a joint venture formed in September 2011 by NorthMarq Real Estate Services and the Minnesota operations of global real estate services firm Cushman & Wakefield. By combining the talent of both organizations at the regional level with the global platform of Cushman & Wakefield, we offer clients the best combination of regional strength and global capabilities. The result: the leading commercial real estate firm by all measures in the Upper Midwest.
This entry was posted in Land. Bookmark the permalink.

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s