First off, let’s be serious here. Just what on earth does “unlimited height” even mean, practically?
Is this the first building ever created that can hold an unlimited number of tenants? You just need to keep adding floors?
To me, this represents some of the key signals that help signpost where we are in the cycle.
First, the term ‘unlimited’. Why would any council say such a thing? Well, before they did, no-one outside the mid-west of the US much cared, even heard, about Oklahoma City Council.
Now they are known globally.
This is yet another sign the hubris of the mania phase of the cycle has started. It also speaks to a prevailing belief in real estate. That it just cannot come down.
And with land prices continuing higher yet again in 2024, why wouldn’t they approve an unlimited height?
It just makes business sense to do so, particularly if land prices keep rising.
The other thing this should represent to you is one of timing. Do you think such a comment would have been uttered even four years ago, back in 2020?
Of course not! No-one had the stomach to approach regulators to ask for these types of development approvals. Much less obtain the necessary bank funding to get started.
That is not the world we live in today though, is it?
So, you should consider this Boardwalk Tower as the single most unique and important marker for the remainder of this cycle both in the US itself and across the world.
And you will do very well to continue to follow any news and announcements surrounding this project with sharp focus.
Not because you want to know just how high ‘unlimited’ is, but the more important fact that this development will show you how bank credit creation at this late stage of the cycle is building.
I mean, I can’t say for sure, but all the hype surrounding this could simply be with the aim of ensuring the finance needed is provided. OKC is not NYC 2.0.
Money is flowing here because it’s basically now impossible to make a sound business decision to build it in downtown New York. Land is now too expensive there. The profit margins simply don’t exist.
So, this means more regional areas are being sought to make the profit potential on offer worth the risk of committing to such projects. But they are regional areas for a reason. The gentrification levels are like less than 10% of those of NYC.
And for banks, this represents a real risk. What assurances do they have that this project will be completed on time? If there are delays or systemic issues with such a new project, can the developers still meet their contractual demands to pay the banks back?
Will those handful of key multi-national tenants that can anchor this project want to come to OKC?
Maybe, just maybe, it’s these bombastic announcements from OKC council that are designed to allay such fears. Remember, the ongoing benefits and kickbacks to the council should this open full of residential, commercial, and sporting tenants are massive.
There’s a vested interest here to ensure this all goes ahead. Again, I can’t say for sure, but I know this.
This cannot happen at any other time in the cycle than now.
We have entered hyper-bubble territory here, the first in human history. This is rapidly going completely over the top now.
And you have even less time to get your financial affairs in order.
So yes, closely follow this example from now on, but ask yourself – do you really know what it all means?
Just how far into debt can the world really go during this hyper-bubble? If this skyscraper does get built, what happens when it finally opens? Should I be bullish at that stage, or bearish?
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Already, social media has lost little time taking this news viral.
Noting the coverage, esteemed architectural design magazine Dezeen said the following.
Commenters were largely unimpressed. “It’s going to take a helluva lot more than one very tall building for Oklahoma City to ‘transform the city into a global destination’,”… “These people are delusional,” they added.
Meanwhile, John Lakeman deemed it “just another out-of-scale, look-at-me, ego-trip design.”
Folks, raise yourself above such noise. Realize what this building truly represents.
This could very well be a marker for the speculative excesses of the coming credit tsunami and the arrogant and exaggerated self-confident behavior of most of the younger generations only now experiencing their first real estate cycle.
This announcement means something. Its completion date means something.
That something big is happening.
And you must be ready for it.
Let the masses argue on social media. Meanwhile, you stand ready to survive, and profit, from your knowledge.
That journey starts today. Right now.
So, sign up.