<h3>Criar um novo Item</h3>
<form class="form-horizontal" method="post" action="#">
    <label for="name">Nome</label><br>
    <input type="text" name="name"><br>
    <label for="area-select">Selecione a Area</label><br>
    <select name="area-select">
        @forelse ($areas as $area)
            <option value="{{ $area->id }}">{{$area->name}}</option>
        @empty
            <option>Nenhuma Area a ser selecionada</option>
        @endforelse
    </select>
    <br><br>
    <button type="submit">Cadastrar Produto</button>
</form>

public function create()
{
    $areas = Area::all();

    return view('item.create')->with('areas', $areas);
}

public function store(Request $request)
{
    $select_area = $request->input('id');
    $item->area = $select_area;
    ...
}