They don't care about your residual value model. Many or most will just hang on to their number and wait for someone to pay it.

So what I am saying with all of this is that, yeah, there are factors that put either downward or upward pressure on land values. But how it all actually plays out in the market tends to depend on the macro environment and what else is going on at the time. And right now we are at a point in the cycle where there is clearly downward pressure on land values.

They don't care about your residual value model. Many or most will just hang on to their number and wait for someone to pay it.

So what I am saying with all of this is that, yeah, there are factors that put either downward or upward pressure on land values. But how it all actually plays out in the market tends to depend on the macro environment and what else is going on at the time. And right now we are at a point in the cycle where there is clearly downward pressure on land values.

Here are some of the highlights from their study:

We find three major cycles with land values reaching their nadir in 1977, just after the city’s fiscal crisis.

Since 1993, land prices have risen much faster than population or employment, at an average annual rate of 15.8%.

We estimate the entire amount of developable land on Manhattan in 2014 was worth approximately $1.74 trillion.

We estimate the long run return to Manhattan land values [since the island was first inhabited by Dutch settlers in 1626] to be about 6.4%.

What’s fascinating to me is the accelerated appreciation. The index starts at 100 in 1950, ends up slightly above that by 1993, and then simply takes off.

Instead, building “the tallest building in the world” is more symbolic than anything else. It’s about ego. It’s about asserting your position on the global stage. And so while this is a chart about tall buildings, it’s actually a pretty telling chart about global ambitions.

Here are some of the highlights from their study:

We find three major cycles with land values reaching their nadir in 1977, just after the city’s fiscal crisis.

Since 1993, land prices have risen much faster than population or employment, at an average annual rate of 15.8%.

We estimate the entire amount of developable land on Manhattan in 2014 was worth approximately $1.74 trillion.

We estimate the long run return to Manhattan land values [since the island was first inhabited by Dutch settlers in 1626] to be about 6.4%.

What’s fascinating to me is the accelerated appreciation. The index starts at 100 in 1950, ends up slightly above that by 1993, and then simply takes off.

Instead, building “the tallest building in the world” is more symbolic than anything else. It’s about ego. It’s about asserting your position on the global stage. And so while this is a chart about tall buildings, it’s actually a pretty telling chart about global ambitions.

Share Dialog

Share Dialog

Share Dialog

Share Dialog

Share Dialog

Share Dialog