Quote:
Originally Posted by cl8ton
Kurt, I have a friend in a family construction biz…
His words are, the office space will be needed eventually and now is the best time to build it
out with the low labor/material costs in today’s economic crisis.
If I look inside any of his buildings, it’s all dirt floor just waiting for a tenant to fill it out!
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Hehe, the classic,"Build it and they will eventually come" strategy. See page 38 of the automaker's playbook for more details.
The only way this works is if carrying costs and reduced build cost are offset by appreciation in property value. That's a very risky wager, particularly in a climate of declining/stagnant rents and cap rate expansion.
The guy has balls, I must admit.