When a ship entered the horse latitudes during the age of sail powered sea travel, it entered a zone characterized by becalmed waters and still winds. A ship could languish in these waters for weeks or even months before a breath of wind finally stirred their sails and provided the crew with a means of escape. Unsure of specifically when the winds would reappear, captains often were forced to jettison surplus freight — usually livestock — to conserve supplies of both fodder and fresh water.

We seem to have entered the horse latitudes of the current real estate investment cycle. Pricing for core assets continues to languish around historic highs. Supply and demand remain in relative balance for the most part. Lender discipline has curtailed the kind of unbridled speculative development that could lead to overbuilding any time soon. Interest rates, while having risen slightly over the past 24 months, remain low, and the cost of carrying assets therefore remains commensurate