GLG News by Residential Operative Builders and Developers (Arizona)

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...

The Zell money is assured of a reasonable profit at the close of the transaction.  Blackstone’s investors are a lot less certain to profit.  The buy is huge and comes after a long expansion of the economy.  The exit price here will depend on increases in rents.  You’ll need a similarly...

The long lag time for approval and development of high rise residential for sale product leads developers from a potentially profitable but small market niche to potentially disastrous construction.  Developers armed with yesterday’s market forecasts have made development decisions on projects...

Americans want to buy bigger and better perimeter detached houses or urban infill condos.  The housing industry now produces new homes at an average 2400 sq. ft.  Move-up housing buyers dream of ever bigger and finer designs.  Intricate designs are more expensive even when mass produced. ...

I agree.  Just look to the history of the financial troubles in Japan and Korea over the last thirty years.