2023 Year in Review
LandVest had another productive year in 2023, closing nearly $800 million in sales within our Institutional Land Group. We represented our clients across 19 states transacting almost 280,000 acres of land. The market was mixed across sectors with strong demand for scaled institutional forestland portfolios, while the market for retail and mid-sized land properties softened. As expected, we saw improving inflation, elevated interest rates, and continued interest in climate solutions and natural capital investments in 2023.
Sold – 31,234± Acres in TX & ID
Sold – 93,223± Acres in AR, LA, AL, VA & FL
Sold – 27,469± Acres in AL
Sold – 4,730± Acres in MI
Sold – 1,451± Acres in MI & WI
Sold – 18,360± Acres in NY
Institutional
Markets for investment-grade timberland and associated environmental assets remained strong in 2023 with continued interest and demand from investors. As in the past two years, inventory was constrained compared to demand with a shortage of sellers opting to hold on to their assets. Combined with an ever-increasing buyer pool of both traditional and natural capital investors (domestic and international), this put increased pressure on available offerings. Among the several large-scale bid events LandVest administered this year, participation was again very strong.
We expect 2024 to look a lot like the second half of 2023. The drive for inflation protection is now softening as rates calm. We expect sellers will be motivated by a variety of market forces including interest rate improvement, continued interest in natural capital investing, portfolio re-balancing, and continued strong timberland sale values. Unknown risks and uncertainties include this year’s presidential election and unfolding geopolitical events. As we head into 2024, we see a strong sellers’ market for quality institutional offerings.
Sold – 13,942± Acres in GA & FL
Sold – 3,668± Acres in NC
Sold – 607± Acres in MI
Sold – 22,001± Acres in MS
Mid-Market and Retail
Limited inventory was also a prominent theme of mid-market and retail opportunities in 2023. Interest rate pressure more directly affected these markets, icing sellers looking for more value. Meanwhile, non-cash buyers were struggling to find value at current interest rates. Inflation remains a concern for many investors; however, rates have cooled over the past few months providing some optimism of interest rate cuts in 2024. Sellers will benefit from the added value that lower interest rates will generate, while buyers will benefit from lower acquisition and holding costs.
If you are considering buying or selling an asset, portfolio, or parcel, we would be pleased to talk with you. Properties represented by professional, transparent, thoughtful, well-executed marketing with a strong international reach are best positioned to achieve superior results.
Contact David Speirs today to share more about your unique property and discuss how LandVest can help you achieve your land investment goals.
