3 Real Estate Development Strategies to Consider in 2024

3 Real Estate Development Strategies to Consider in 2024 //

Real estate is a localized asset. Its value is influenced by things like tax rates, the local business climate, government regulations, demographics, nearby amenities, and the cost of living.

But in addition to local forces, it's critical to also consider the macroeconomic landscape when making real estate decisions.

The current market is really interesting right now. As an asset class, real estate is facing significant headwinds. Maturing debt is a huge problem, especially for properties bought at the height of the cycle at compressed cap rates. We're seeing rent growth stagnate, markets being overbuilt, and continued supply/demand dislocation for single-family houses and investment properties.

One of the biggest challenges that real estate developers need to contend with is the fact that their product delivery lags the market by 18-24 months. So they're working with imperfect information, while also trying to anticipate what the world will look like in a couple of years.

With that said, the macroeconomic trends we're seeing today are conducive to several unique real estate development strategies in 2024.

In this video, we discuss the current real estate market, trends to consider, and a couple of development strategies to consider in 2024, including infill development, build-to-suit (BTS) development, and land entitlement.

⌛ Timestamps ⌛
0:00 Introduction
0:58 The Current Real Estate Market Backdrop
4:43 3 Real Estate Development Strategies to Consider in 2024/25
5:18 Infill Development
7:08 Build-to-suit (BTS) development
8:41 Land Entitlement

Our mission at Marsh & Partners is to help educate and guide business owners, investors, and developers through the complex world of real estate decision-making.

We're bullish on the freedom real estate provides, as both a passive investment and long-term wealth creation vehicle.

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