Why don't they use an existing building?

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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.
 
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.
 
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.
 
Those buildings are cheap to throw up too, nothing but four walls and a roof.
 
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.
 
I have heard that there are tax benefits. They built a new Walmart locally on adjoining property to the old Walmart.
 
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.
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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.
 
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??"
 
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They want them made to order.Set up their own way,so the stores are all similar and familiar to the customer.
 
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.
 
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
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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.
 
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.
 
Rural King uses existing infrastructure when they open new locations.

Their favorites are old Wal-Mart and old K-Mart buildings.... they're not too picky.
 
Originally Posted By: Dyusik
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.
37.gif

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.


Vinyl villages, cookie cutter communities, suburban sprawl. It's the American way, unfortunately. What happens around here is tilled farm land around outskirts of suburbia is sold off by the heirs after the farmer dies or goes into assisted living or whatever, and the land is bought by a developer and re-zoned either residential or commercial, then suburbia gains another developed/built-out acres.

I can't throw stones as I live in such a development although it was not a new sprawl, the area has been a suburb with interspersed small farm fields for a very long time this particular subdivision was planned to be as aesthetic as possible and small with only 28 houses. It was originally restricted to brick exteriors but then the bubble burst and the small family owned local builder sold off the remaining about 14 lots to a large regional/national that used to specialize in slab houses they'd slap up in about two days flat, and the back half of the division they bought is vinyl one stories with a brick or stone facade for 1/2 to 3/4 of the front facing side of house. Zero down, sponsored financing no matter how bad your credit, move in for a dollar promo type stuff. Most of those new neighbors keep their properties nice but there are a few that either don't care or can't really afford to own a home and don't do much upkeep. But I guess every neighborhood has of few of those.

Fiancee and I are each looking to sell our places soon and get a place we'll live once married (we're traditional and won't shack before marriage). We'd like a small to medium size house just outside suburbia with an acre or two and some farm land surrounding but at the rate that sprawl is happening around here, any such property will be surrounded by planned communities within 10 - 15 yrs maybe sooner. Although by then we would probably be looking to sell again anyhow.
 
Originally Posted By: Nick1994
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.


Yeah but then tear it down.

I get it that its private property, but everywhere I go, especially bad in NJ, DE and MD, its a constant transition of forest or worse, farmland, into these garbage stores and shopping centers. The people running the towns want the tax money; but Id hope that the residents would prefer the farmland and smart repurposing of existing properties.

Originally Posted By: Chris142


All these empty buildings are on major roads.

I don't get it.


Exactly. Lets sell the next parcel of farmland while a vacant shopping center is on the same road a half mile up.
 
I agree with you Chris. Fortunately the old Kmart in my town is now a Tractor supply, a planet fitness, and a bargain hunt. The old Dodge dealership has been gutted down the bones and is reportedly being turned into a chain restaurant. So sometimes businesses do utilize existing buildings. Of course, they're are just as many new businesses breaking new ground too.
 
One of the Honda dealers here converted half of an old Sam's Club into a dealership. The other half of the building, the back part is a warehouse. Hard to tell what is used to be.

 
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