Sunday, May 8, 2011

Free Sand ! a good sign of economic recovery!

Yes, "free sand" is a good sign of an economic recovery. Why? Because what it means is that some property developer is willing to pay some guy to run a big Caterpillar to dig dirt to prepare a site for development.

And lenders won't lend to developers to pay for dirt digging unless they believe that the dirt being dug will lead to a development that will be occupied at a rent rate that will recover the cost of digging the dirt and then some.

It's really quite intuitive! As an Economics undergraduate I know that there is "no such thing as a free lunch" but as a commercial real estate professional I know that there is such thing as "free sand" and if you want to know where this free sand is located I'd be glad to let you know... just e-mail me!

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