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Why don't they use an existing building? #4754647
05/11/18 10:47 PM
05/11/18 10:47 PM
Joined: Jun 2003
Posts: 17,479
Deplorable in apple valley, ca
Chris142 Offline OP
Chris142  Offline OP
Joined: Jun 2003
Posts: 17,479
Deplorable in apple valley, ca
Seems like whenever a new business opens up they build a new building. For example. Tractor supply built a brand new building,now they are going to open another tractor supply across town. About 8 miles away.

We have an empty Kmart or 2,empty Walmart,empty Lowes buildings but they are going to build another new building instead of utilizing existing ones.

All these empty buildings are on major roads.

I don't get it.


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Re: Why don't they use an existing building? [Re: Chris142] #4754653
05/11/18 10:56 PM
05/11/18 10:56 PM
Joined: Jul 2013
Posts: 1,753
Ottumwa, Iowa
jhellwig Offline
jhellwig  Offline
Joined: Jul 2013
Posts: 1,753
Ottumwa, Iowa
Sometimes renovations cost more than new. Could be several other factors. Abatements. Zoneing. Leins.


Sparks fly from my fingers.

1995 Chevy K2500 Suburban lt 5.7
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Re: Why don't they use an existing building? [Re: Chris142] #4754654
05/11/18 10:56 PM
05/11/18 10:56 PM
Joined: Mar 2017
Posts: 5,745
...
PimTac Offline
PimTac  Offline
Joined: Mar 2017
Posts: 5,745
...
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.


2017 Mazda CX-5 GT.

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Re: Why don't they use an existing building? [Re: Chris142] #4754655
05/11/18 10:56 PM
05/11/18 10:56 PM
Joined: Sep 2004
Posts: 21,726
Orlando, FL
Mr Nice Offline
Mr Nice  Offline
Joined: Sep 2004
Posts: 21,726
Orlando, FL
Maybe the older buildings have problems like a leaky roof or maybe the building is too big ?

Location, location, location ?

Re: Why don't they use an existing building? [Re: Chris142] #4754671
05/11/18 11:30 PM
05/11/18 11:30 PM
Joined: Apr 2012
Posts: 5,262
MA
Wolf359 Offline
Wolf359  Offline
Joined: Apr 2012
Posts: 5,262
MA
Originally Posted By: Chris142
Seems like whenever a new business opens up they build a new building. For example. Tractor supply built a brand new building,now they are going to open another tractor supply across town. About 8 miles away.

We have an empty Kmart or 2,empty Walmart,empty Lowes buildings but they are going to build another new building instead of utilizing existing ones.

All these empty buildings are on major roads.

I don't get it.


It's all about taxes and depreciation. I believe for commercial buildings it's depreciated over 39 years. There are benefits to tearing it down and resetting the clock. Renovation costs can also be high, you've got to rip something out and then put something back in. If you just tear the whole thing down and start from scratch, it might be quicker than a renovation. Besides as time goes on, maybe the walls or the structure isn't quite right, the plumbing gets old and newer structures are always more appealing. That's why chains remodel every few years. Otherwise it gets old and dated.

Re: Why don't they use an existing building? [Re: Chris142] #4754672
05/11/18 11:35 PM
05/11/18 11:35 PM
Joined: Nov 2008
Posts: 9,107
Phoenix
dishdude Offline
dishdude  Offline
Joined: Nov 2008
Posts: 9,107
Phoenix
Those buildings are cheap to throw up too, nothing but four walls and a roof.


2018 Challenger SRT
Re: Why don't they use an existing building? [Re: Chris142] #4754675
05/11/18 11:51 PM
05/11/18 11:51 PM
Joined: Feb 2013
Posts: 10,867
Phoenix, AZ
Nick1994 Online content
Nick1994  Online Content
Joined: Feb 2013
Posts: 10,867
Phoenix, AZ
Could be poorly insulated, lacking electrical systems, sewer and water systems not where they need it, aging roofs, old HVAC systems, doors not where they need them etc.


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Re: Why don't they use an existing building? [Re: Chris142] #4754681
05/11/18 11:59 PM
05/11/18 11:59 PM
Joined: May 2012
Posts: 1,401
Georgia
AVB Offline
AVB  Offline
Joined: May 2012
Posts: 1,401
Georgia
I have heard that there are tax benefits. They built a new Walmart locally on adjoining property to the old Walmart.

Re: Why don't they use an existing building? [Re: Chris142] #4754695
05/12/18 12:49 AM
05/12/18 12:49 AM
Joined: Sep 2014
Posts: 2,130
US-WA
Dyusik Offline
Dyusik  Offline
Joined: Sep 2014
Posts: 2,130
US-WA
It is the same with residential structures, it just burns my chops to see what used to be a pleasant green area turn into a jungle of structures. This for profit crud is really ugly. There was an old house up the street from me, yes the house needed to be demolished as it was far gone, vacant for years, but the property was gorgeous with rows of fruit trees, just a dream. Now this lot is a home to about to 19 townhomes. puke
I want to move to the woods, some 50 miles away from a small town so that I can have [hopefully] 10 years of not being surrounded by 6,000 neighbors per acre.


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Re: Why don't they use an existing building? [Re: Chris142] #4754728
05/12/18 02:59 AM
05/12/18 02:59 AM
Joined: Dec 2009
Posts: 5,083
Tn.
CourierDriver Offline
CourierDriver  Offline
Joined: Dec 2009
Posts: 5,083
Tn.
Here you why ?? $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Its all about the money and yes tax incentives and on and on and on....just ask a bean counter AKA the accounting department...... another example, why do we not want to put a new engine and transmission in our old car and drive it some more---" We want something new,,right??"

Last edited by CourierDriver; 05/12/18 03:01 AM.

Forks Over Knives , see the movie on netflix
Re: Why don't they use an existing building? [Re: Chris142] #4754744
05/12/18 04:39 AM
05/12/18 04:39 AM
Joined: Oct 2011
Posts: 5,091
USA
NHGUY Offline
NHGUY  Offline
Joined: Oct 2011
Posts: 5,091
USA
They want them made to order.Set up their own way,so the stores are all similar and familiar to the customer.

Re: Why don't they use an existing building? [Re: Chris142] #4754759
05/12/18 06:17 AM
05/12/18 06:17 AM
Joined: Oct 2004
Posts: 8,060
Cincinnati, OH, USA
bullwinkle Offline
bullwinkle  Offline
Joined: Oct 2004
Posts: 8,060
Cincinnati, OH, USA
The Rural King & Orscheln's stores they've been building around here are going in existing buildings-the Maysville, KY RK went in an old K-Mart, the Orscheln's in Mt. Orab OH went in an old Kroger. I think it lust depends on the deal-if it's good enough, they'll do it. K-Mart in Hillsboro OH may become an RK as well.


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Re: Why don't they use an existing building? [Re: Chris142] #4754763
05/12/18 06:21 AM
05/12/18 06:21 AM
Joined: Dec 2017
Posts: 2,501
SE British Columbia, Canada
Snagglefoot Offline
Snagglefoot  Offline
Joined: Dec 2017
Posts: 2,501
SE British Columbia, Canada
The tenant, like Tractor Supply, probably does not own the building. They are leasing from the the building owner. The investors might be the same but not necessarily.


If you want the job done right......do it yourself.
Re: Why don't they use an existing building? [Re: Chris142] #4754768
05/12/18 06:35 AM
05/12/18 06:35 AM
Joined: Jul 2015
Posts: 3,876
New England
madRiver Offline
madRiver  Offline
Joined: Jul 2015
Posts: 3,876
New England
Many solid retailers get into the business of real estate by purchasing the lot/building under another company and lease back to themselves.

My dad tried to his own business once in life which was import/export with Syria with my cousin. You know how that worked out smile The upside he purchased the office condo and leased to themselves in a prime downtown location (river view, garage parking) during a time real estate was cheap. He does really well off the rental to a software company that expanded into it and uses it as conference room and ceo office.

Re: Why don't they use an existing building? [Re: Chris142] #4754778
05/12/18 07:07 AM
05/12/18 07:07 AM
Joined: Jun 2003
Posts: 33,252
ME
eljefino Offline
eljefino  Offline
Joined: Jun 2003
Posts: 33,252
ME
The stores here that get recycled turn into "Big Lots" or "Mardens Salvage". One turned into a very nice Market Basket grocery.

The Sears here is so sad but I think it's mostly the early 90s decor/ shelves/ lighting and not the building itself.

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