Is Development Dead??
Is anyone thinking of getting out of development for at least the next 36 months? There is no way deals make any sense, and those who say they do, are lying to themselves. Those that have deals in construction are seeing higher interest rates than they underwrote and while rents may be better than they pro forma'd, there is no way theiris going to be higher than what anyone can put debt on the property at. They're neg leverage.
For those looking to find deals, construction cost keep going and no one knows what cap rates to underwrite…..
Is this industry dead for the coming years to come??