Quote:
Originally Posted by oldmanshirt
That's what I've always heard is the reason there's not more or quicker development around the urban core. But sooner or later you'd think the owners of these properties wouldn't be able to resist and finally cash in, right? Or are they really just content to sit on an empty lot indefinitely?
At the very least, those owners who own multiple properties in the downtown vicinity (of which I'm sure there are several), would realize that by allowing a couple of their properties to be sold and developed, it would cause their remaining properties to gain that much more value. I'm far from being a real estate wiz, but that makes sense to even me
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Oldmanshirt:
You would think.........but people are strange......and behave irrationally when it comes to these sort of decisions. Some do want to cash in, but most are content to wait for a certain number (disconnected from current reality). It would help if BCAD got more agressive on land valuations.......it would make it harder to hold on......
Also - an interesting phenomenon - property owners are generally very hesitant to be "the first" to sell.........they're fearful that people who hold on will get a much higher price.........an economic motivation, but also an aversion to looking stupid for selling "too cheap".......very paranoid, but if you were within spitting distance of Broadway & Pearl, you'd be hesitant to sell for a reasonable price, too........the only reason we were able to buy our site is because the owner was motivated by other issues.........
It's funny.......most people think real estate developers can pay "whatever" for a site...........and it's just not true, especially now, with capital markets on life-support.......
Chad.