Real estate development predictions for 2023

by Timothy Inklebarger

Featuring the perspective of:

Sue Hawkes, managing director, The Collaborative Companies

Will you add inventory in 2023? Can you tell us about your plans?

Hawkes: Our inventory in 2023 will be increased by the additional pre-sale offerings in several new buildings. The existing projects will be wrapping up the last 25% of sales during that timeframe.

Will agents be more important to your business in 2023?

Hawkes: The brokerage community is always important to our marketing efforts. With low inventory and little new product coming online in the next 12 months, the supply is still very tight. Our focus on integrating brokers into all of our sales programs will continue to be strong. We currently average approximately 75% co-brokes on all of our projects.

Will supply chain issues continue to hamper new construction in 2023?

Hawkes: Supply chain issues are still a concern and are expected to be so throughout 2023. Although production will be down and prices high, it is still difficult to manage the import of appliances, cabinetry and some electronic systems. The backlog for production of these materials is still six to 12 months.

The cost of lumber has receded, which is good news, but national disasters, like Ian, will not prevent the distribution of materials from being diverted to assist the re-construction in Florida.

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