Hints of growing confidence in the US economy offer hopefulsigns across many real estate segments, including land. Even so,restoring balance to the oversupply of development-ready land willrequire smart development decisions, as well as time.

Land transactions have gained momentum, especially across themajor metro areas of the Sunbelt. Some properties in play aredistressed; many are not. Underlying demand is driving long-termlandholders, who have been waiting for a positive turn in themarket, to put their land in play—especially throughout Texas,Tennessee, Georgia and the Carolinas. Furthermore, infill tractsare the hottest land category.

The strong preference for infill development stems from multiplefactors, one of which is current available capital. Financialpartners and investors want results from projects as soon aspossible, and infill land provides those results as it is, moreoften than not, infrastructure ready. As an asset class, land isgenerally out of favor with most large, federally-regulated banksas the FDIC seems to be pressuring them to push land off theirbooks. Still, specialty land lenders, such as Stratford Land forlarger deal financing and community banks for smaller parcels, aremore likely to be receptive to business plans for infilldevelopment.