Originally Posted By: PimTac
The K Mart property is likely owned by the hedge fund crook that is decimating Sears. Sears bought out K Mart some time back. Property values are the primary reason to hold onto property.
Yes your idea makes sense but ROI and property values override that.
You got that backwards, K-mart bought Sears, and they're trying to unload a lot of their property. Sears was unusual in that they owned most of their stores instead of leasing.
Interestingly, the Tractor Supply here is also in a former K-mart. (half of it) The other half was a Big Lots until it recently disappeared overnight. I wonder if Tractor Supply has some kind of deal for the old K-marts...
It drives me crazy too to see all these empty buildings and even tearing down perfectly good ones while they build new, but the cost of the building was figured into operating costs long ago. Whenever a company custom builds a building, they have a specific life expectancy. It's paid for during that time, and built into their business model. After that it's just considered trash.
It's often very hard for commercial landlords to re-lease custom made buildings that are not just a generic cubic warehouse style. More profitable to tear down and start over. You have to understand these places are paying something like $50,000/month in rent. Depends on the location and size of course.
