SEPTEMBER 2-SEPTEMBER 15, 2015
SECTION B
INSIDE
Land & TOD
Jerry Kempf
1B
Green Building &
Well Building
Michelle Liebling
1B
Construction Law
W
hen the economy
begins to spiral
downward, you
may hear reports in the news
of falling housing starts,
increased unemployment
and a reduction in economic
output. If this sounds all
too familiar, you clearly
remember the beginning of
the Great Recession. How
does the economic cycle
affect land development
and investors? The increase
and decrease in land sales
is an indicator of a greater
picture, the strength of our
economy and whether we
are in a period of recession,
expansion or somewhere in
between.
To determine the present
state of the economy and its
affect on land sales, first we
must understand the business
cycle as a whole. These
periods can vary considerably
in length, but are intertwined
in the overall economy.
Peak.
The peak is when the
economy is running at full
steam. Employment is near
or at its highest levels, gross
domestic product output is
at its upper limit and income
levels are climbing. When the
economy starts to overheat,
inflation rears its ugly head.
This translates to a surplus
of land sale activity spurred
on by investor confidence.
Companies are thriving and
expanding, and are at an
economic strength that allows
them to take higher risks.
Employment rates are high as
well, increasing the need for
new housing, retail, industrial
and office buildings.
Recession.
The saying
“what goes up must come
down” applies here. After
experiencing a great deal
of development, income
and employment start to
head south. As the prices of
goods are slow to change,
they most likely will remain
near the same level as in the
peak period unless it is a
lengthy recession. Fewer cars,
appliances, homes and other
items are purchased during
a recession, and the return
to normal spending levels by
consumers can take a while
following the official end of
a recession. The same occurs
with businesses that make cuts
on payroll, equipment and
facilities. Retail businesses
usually are among the
first to delay opening new
locations, while other types of
commercial businesses quickly
B
y now, we’ve all
heard that “sitting is
the new smoking.”
The latest buzz surrounding
wellness in the workplace is
that our sedentary lifestyle,
coupled with being tethered
to our desks, is a hazard to
our health.
But wait, I’m not sedentary.
I exercise and eat healthily.
(Plus, wine is good for
you, right?) A new Time
magazine article reported
that a recent review of
43 studies analyzing daily
activity relating to cancer
rates found that people
who reported sitting for
more hours of the day had
a 24 percent greater risk
Jerry Kempf
Senior broker,
Unique Properties, Denver
Michelle Liebling,
NCIDQ,
LEED AP, IIDA
Senior associate, design director,
Gensler, Denver
Chart courtesy: Unique Properties
Business cycle phases
At The Alliance Center, Gensler created a light-filled space and strong visual connections from one side
of the floor plate to the other.
