Brian Gordon Rising Quotations

Stable demand and rising land values have placed upward pressure on pricing resulting in a 14.4 percent increase in average asking rates in only six months. With robust sales activity and mom-and-pop operators seeking expansion opportunities, we believe there is room for additional increases in newly constructed retail centers.

We continue to see above-average rental rate growth in the speculative sector, while rising land and construction costs will continue to drive rates north. While the supply-side is facing record development costs, the demand-side of the equation is supported by the third-fastest growing segment in the local economy, professional and business service office users.

We've seen a tremendous amount of interest in that sector of the office market. It's driven by a few things, including rising development costs.

We believe that apartment rent growth will range from 8 to 10 percent by the close of 2005. Rising home values, flat to modest increases in personal incomes and a lack of new inventory all point toward continued growth in rental rates.

Asking rents are going to continue rising in 2006 and beyond due to the increased cost of development. This is another example of a developer being required to shift design plans to meet the current economic conditions of the construction industry.

Any time you talk about rising costs for certain necessities it is a cause for concern. It's particularly difficult for seniors who are on tight, fixed incomes.

Those projects with an extended sales period have higher development risks given the increased potential for rising construction costs. Those projects with experienced, well-financed development teams as well as strong locations and good branding are more likely to succeed.