New-Growth Indicators: What Do You Look for?
By Mariwyn Evans, Commercial Editor, REALTOR® Magazine
If you think you have a good nose for where the next new area of development or redevelopment will be in your market, we want to hear from you. Contact Mariwyn Evans at mevans@realtors.org by Sept. 25. Also, take our poll on good signs of future growth in an area.
I like to focus on jobs and employment. If you job market improves, builders will be looking to develop housing, retail, etc. to service those jobs. When looking at potential new growth areas/developments, watch land sales. Often, new roads or road widening will lag behind new private development although at times it will precede it.
In established urban locations, old becomes new as properties are redeveloped. Keep an eye on your local redevelopment agency as they offer lots of incentives to attract developers. Checking on land use and zoning applications will give you lots of advanced notice on what’s going where.
My first indication is ‘job market’/unemployment figures. Prior indicator is how major businesses located in my area are doing. Commercial space usage is another indicator and how the hotels are doing in the area.