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#4754647 - 05/11/18 10:47 PM Why don't they use an existing building?
Chris142 Offline


Registered: 06/05/03
Posts: 16678
Loc: 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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#4754653 - 05/11/18 10:56 PM Re: Why don't they use an existing building? [Re: Chris142]
jhellwig Offline


Registered: 07/01/13
Posts: 1483
Loc: Ottumwa, Iowa
Sometimes renovations cost more than new. Could be several other factors. Abatements. Zoneing. Leins.
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#4754654 - 05/11/18 10:56 PM Re: Why don't they use an existing building? [Re: Chris142]
PimTac Offline


Registered: 03/04/17
Posts: 3851
Loc: Soviet State of Washington
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.
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#4754655 - 05/11/18 10:56 PM Re: Why don't they use an existing building? [Re: Chris142]
Mr Nice Offline


Registered: 09/12/04
Posts: 21084
Loc: Orlando, FL
Maybe the older buildings have problems like a leaky roof or maybe the building is too big ?

Location, location, location ?

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#4754671 - 05/11/18 11:30 PM Re: Why don't they use an existing building? [Re: Chris142]
Wolf359 Offline


Registered: 04/27/12
Posts: 4637
Loc: 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.

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#4754672 - 05/11/18 11:35 PM Re: Why don't they use an existing building? [Re: Chris142]
dishdude Offline


Registered: 11/14/08
Posts: 8602
Loc: Phoenix
Those buildings are cheap to throw up too, nothing but four walls and a roof.
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#4754675 - 05/11/18 11:51 PM Re: Why don't they use an existing building? [Re: Chris142]
Nick1994 Offline


Registered: 02/19/13
Posts: 9988
Loc: 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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#4754681 - 05/11/18 11:59 PM Re: Why don't they use an existing building? [Re: Chris142]
AVB Offline


Registered: 05/20/12
Posts: 1201
Loc: Georgia
I have heard that there are tax benefits. They built a new Walmart locally on adjoining property to the old Walmart.

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#4754695 - 05/12/18 12:49 AM Re: Why don't they use an existing building? [Re: Chris142]
Dyusik Offline


Registered: 09/26/14
Posts: 1926
Loc: 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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#4754728 - 05/12/18 02:59 AM Re: Why don't they use an existing building? [Re: Chris142]
CourierDriver Offline


Registered: 12/27/09
Posts: 4907
Loc: 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??"


Edited by CourierDriver (05/12/18 03:01 AM)
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#4754744 - 05/12/18 04:39 AM Re: Why don't they use an existing building? [Re: Chris142]
NHGUY Offline


Registered: 10/09/11
Posts: 5017
Loc: USA
They want them made to order.Set up their own way,so the stores are all similar and familiar to the customer.

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#4754759 - 05/12/18 06:17 AM Re: Why don't they use an existing building? [Re: Chris142]
bullwinkle Offline


Registered: 10/09/04
Posts: 7577
Loc: 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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#4754763 - 05/12/18 06:21 AM Re: Why don't they use an existing building? [Re: Chris142]
Snagglefoot Offline


Registered: 12/31/17
Posts: 1533
Loc: Alberta
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.

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#4754768 - 05/12/18 06:35 AM Re: Why don't they use an existing building? [Re: Chris142]
madRiver Offline


Registered: 07/11/15
Posts: 3448
Loc: 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.

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#4754778 - 05/12/18 07:07 AM Re: Why don't they use an existing building? [Re: Chris142]
eljefino Offline


Registered: 06/15/03
Posts: 32489
Loc: 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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