LAND LAGS

The most anemic sector, and one which is often seen as a sign of a healthy market, is speculative land sales.   The only retail, office or industrial land sales with immediate development plans have had a specific user in tow.  Most have been smaller, single tenant deals such as the new Parker’s at Skidaway Road and DeRenne Avenue. 

With no demand to justify development, much less an ability to finance improvements, several parcels have been placed into foreclosure or have had their notes sold.  Just a few years ago, these same tracts were thought to be good bets in the apparent path of growth.  This has provided opportunities for land sales at greatly discounted prices, but investors know they have to endure long hold periods before any return can be expected.  Multi-family land sales, including projects supported with Department of Community Affairs tax credits, have been active particularly in the Pooler area. 

Part 3…Outlook

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for “BiS-Business In Savannah” weekly business publication and is an active blogger.  www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate Sales