Land Sales Barometer Dropping

DENVER-Land sales in the Denver area fell to about $175 million in 2001 from about $225 million in 2000, shows a Grubb & Ellis Co. report by its Denver team. Meanwhile in Colorado Springs, it’s the worst year since 1998 for land sales despite Capital Pacific paying about $55 million for the 25,000-acre Banning Lewis Ranch in what may have been the largest single private land sale in the nation in 2001.

Denver’s land sales volume peaked in 1999 when developers and builders shelled out nearly $300 million. “Based on the slumping economy, it is not surprising that land acquisitions slowed in 2001 as lenders, developers and corporations alike scaled back their plans for future growth,” concludes the freshly released report. “In addition, it should also come as no surprise that for the most part land activity is expected to remain light through 2002.”

Acquiring land is one of the first steps toward fostering and promoting growth, the company points out. Currently, there’s a surplus of everything from single-family homes to class A office properties in the metro area, which “will have a profound impact on the land market over the next few years,” researchers say.