GLG News by Land Option Contracts Experts: Homebuilders (US)

The key to the future success of the Mills’ properties lies with the releasing and renovation programs which will increase sales volumes and the profitability of tenants. The rents will then accelerate and the return on the investment will provide a greater residual to the land/equity. This is the story...

Residential development in the far past over a quarter century ago followed jobs.  Aerospace in Southern California, electronics in Phoenix, aircraft and software in Seattle, Disney in Anaheim and Orlando and gaming in Las Vegas were the stimulus for job growth and resulting homebuilding. ...

Old adages just keep turning up.  This company is being done in by the autocratic attitude of its now ex-CEO and the continuing concentration of power in the hands of Private Equity Capital.  Mr. Nardelli just wasn’t nice and when they could, the investors whined him out.  His results...

I like three of the points made here best.  Housing prices have been increasing faster than incomes, the sub-prime market has never been tested in a down housing market and if the market becomes an auction market, prices can fall sharply.  I think these are the keys to further price and...

With the exception of the high-end of the Class “A” rental apartment market, affordability is an issue with tenants.  Every rent increase calls for a household budget adjustment that causes pain to other providers of household goods and services.  We’ve noted several times that wages for the...

The lending picture in the home loan industry is not great.  Defaults are rising and the next sub-prime pools will include tougher underwriting and higher rates.  Volume is down in the purchase market and refinances are more difficult to accomplish.

I think people are concerned, better informed and a lot more forceful in their wishes for the community they have selected than in the past.  Don’t expect the process to get less intensive in the future.  The residents selected the community because it had a set of qualities they wanted to...

I am offering this observation as support rather than a change of prediction. Again, it appears there will be pressure on the retail/wholesale and manufacturing sectors which will reduce demand for industrial property in the near term.  However, I just see less success rather than collapse in this...

I believe we’ll see reduced absorption numbers for industrial property in the near future periods. The housing boom has stimulated retail which has required warehousing primarily for distribution of goods manufactured overseas.  All segments here will slow as this chain retreats.

A lot has happened here all of a sudden:  Canada’s Ivanhoe has taken over the offshore developments, the Chicago development has been sold and now Colony Capital has removed the Xanadu property from the Mills table.  Mills announced that sales for the last 12 were $ 392 per sq. ft. versus...