Here are some tips for investors to time their investments around infrastructure developments: 1.

Buy ahead of announcements:

Monitor potential infrastructure projects in emerging growth corridors and buy properties ahead of official government announcements. This allows acquiring assets at lower prices before speculation drives values up. However, there is a risk the project is delayed or cancelled, reducing values again. This strategy requires thorough analysis of local growth drivers and opportunities to determine locations most likely to benefit from future infusions of public and private investment.

Acquire speculative properties:

Invest in sites and buildings with substantial redevelopment or densification potential that depend on improved infrastructure to unlock their full value. Such properties tend to trade at a discount before projects due to risks around timing and execution. Once infrastructure is in place, their flexible attributes become highly desirable, often attracting interest for large-scale mixed-use redevelopment at substantially higher prices. This opportunity is best suited to experienced developers.

Target infrastructure nodes:

Focus on commercial sites located directly adjacent to new transit stations, highway interchanges, airport terminals and other infrastructure nodes. These prime locations offer permanent scarcity and visibility advantages that result in significant rent and value premiums once the project becomes operational. While deal opportunities may be limited, the potential upside is highest for these highly connected and accessible sites.

Sell or redevelop:

For owners of existing commercial properties in the path of new infrastructure, planning exit strategies or redevelopment ahead of completion often yields maximum benefits. As demand for well-located space surges, sale prices and redeveloped density allow recovering higher values. Existing buildings without substantial upgrades may face functional obsolescence, requiring investment to benefit from enhanced connectivity and remain competitive. Owners able to redevelop can potentially capture the greatest upside by maximizing property utility and income potential.

Diversify and manage risks:

Timing investments around publicly announced infrastructure requires managing risks related to cost overruns, delays, scaled-back projects, and overspeculation. Diversifying across locations, building types, tenant sectors, and stages of projects helps mitigate exposure to variables outside investors' control. Maintaining adequate capital reserves and flexibility are also key to responding in case infrastructure does not deliver expected benefits as anticipated. An ongoing monitoring process maximizes upside potential while limiting risks for most investors.

In summary, capitalizing on infrastructure opportunities is challenging but potentially rewarding. It requires reconnoitering emerging locations, identifying prime sites, understanding redevelopment possibilities, and balancing risks through portfolio diversification and flexibility. With guidance on timing strategies tailored to their needs and risk profiles, investors can benefit substantially from infrastructure catalysts transforming cities. But understanding local markets remains key to avoiding speculation disconnected from demand fundamentals.