As a researcher and insight-seeker, it’s not surprising that I seek out and read with great interest and scrutiny information on the industry published by other entities, particularly in the areas that Pellucid doesn’t directly track. As such, I’ve been mulling over two pieces of information released by Marcus & Millichap’s Leisure Investment Properties Group (LIPG): The semi-annual Golf & Resort Investment Report and their annual Golf Investor Sentiment Survey. As they outline in the reports, it’s somewhat curious that transaction pricing trends appear to be stabilizing (based on median) or improving (based on mean or average) while the investor sentiment indicator (Golf Investment Index or GII) declined significantly in ’15 vs. ’14.
In this issue I’ll take a look at the highlights of each published report and offer my take on what might be happening and how one might either rationalize or reconcile the two differing takes on the valuation and liquidity of golf as a real estate asset:
• The Golf & Resort Investment Report paints a stable-to-improving picture for valuation and liquidity as their total market universe saw increases in both median and mean prices while the more representative sub-market of $1-$10M saw a nice gain in mean (average) but a slight decline in median
• The Golf Investor Sentiment Survey offers “hope” in much of the commentary but the quantitative figures are indisputably lower compared to the ’15 and ’14 previous readings at both the composite and most component metrics (except confidence in the survey respondents’ facilities’ future EBITDBA prospects, that was all sunbeams, go figure)
• So, am I optimistic, pessimistic or bi-polar on the future of golf as a real estate asset class and should you be looking for your checkbook or hanging out a for sale sign on your facility and taking early retirement?
As always, I encourage readers to read the basic information “from the horse’s mouth” and form their own opinion in addition to considering my second-hand take on what the information is saying. The articles can be found here:
For our subscribers, read on for my take and the color commentary of what it means and how it hangs together as a story. For our Executive Summary recipients, you can get the rest of the story one of three ways (all can be previewed and purchased at Pellucid’s website (www.pellucidcorp.com):
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