If it was done in the context of a competitive situation where several companies were vying for the same space, that was a different story. There is a shortage of key people, the market is hot and demands are great. Under discussion, too, was the issue of how to compensate via ownership in a project or via securities, if the company is public. Long-term, he said, there is a necessity to provide some type of ownership. For its upcoming meeting in Orlando, the group will gravitate toward case studies of specific projects.
Deals are in line with people's expectations.
New development financing is becoming increasingly difficult to find, he said. Kamm also pointed out that REITs will continue to partner with pension funds, largely because there is little opportunity to raise substantial new capital in the public arena. A look at absorption, values, rents and cap rates in different markets showed that Phoenix may be overbuilt at the moment. It also showed that the group is confident that there is no shortage of capital available, even though it might be more expensive than it had been. Capital is driving development, but it's in balance.