Are Downtown Property Values Returning to 1999? - May 2010

Prior to 2000, downtown Sarasota high-rise land values ranged from $20-$30 per square foot depending on location and the “highest and best use” was office, retail and restaurant.  Then the urban living tsunami hit Sarasota and most downtowns across the country.  Almost overnight the “highest and best use” for downtown high-rise land became  residential and values skyrocketed to well over $100 per square foot.  All sites with downtown zonings were mistakenly viewed as “residential condominium” sites and developers raced to address the perceived insatiable demand for urban living.  The demand for new residential downtown has evaporated.  Individual condominium transactions are occurring but not nearly at a pace or price that warrants new development.  Without the residential  demand what is the value of downtown land?  Have downtown land values returned to pre-2000 prices of $20-$30  per square foot?