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> A desire to be clever trumps rational analysis. Sometimes, a desire to be analytical trumps the desire to simply observe the unintuitive nature of economics[

> A desire to be clever trumps rational analysis. Sometimes, a desire to be analytical trumps the desire to simply observe the unintuitive nature of economics[1,2]. > ...abandoned sites express the lack of market demand... Market demand is subject to the effects of price stickiness[3]. What was once an expensive building on an expensive piece of commercial real estate, might now be very cheap (thus earning demand), but the nominal price remains for some time (this is usually because the company (e.g., Walmart) has enough money that they can sit on an unused asset, rather than listing it at market price). IOW, there isn't market demand, because the nomial price hasn't reached the market price. 1. http://searchdatacenter.techtarget.com/news/4500256609/Greenfield-vs-brownfield-data-center-development-strategies http://searchdatacenter.techtarget.com/news/4500256609/Green... 2. http://www.containerhomeplans.org/2015/04/what-i-wish-id-known-before-building-my-shipping-container-home/ http://www.containerhomeplans.org/2015/04/what-i-wish-id-kno... 3. https://en.wikipedia.org/wiki/Nominal_rigidity https://en.wikipedia.org/wiki/Nominal_rigidity

brudgers 10y ago
Suburban Walmarts are typically cheap buildings on cheap pieces of land. Simple [though quality] standardized construction, large open spaces, minimal finishes and specialty contractors keep construction costs low. The ability to create a destination on land of its choosing keeps land costs low: a Walmart is desirable to real-estate developers because it creates value in the surrounding parcels and Walmart is in a strong negotiating position because there is little demand for the parcels that it can utilize. Not to mention, scale lets Walmart employ a lot of professional expertise. The primary market for abandoned Walmart sites is Walmart', a company like Walmart seeking to compete with it directly. Walmart improves its short and long term prospect by preventing Walmart' from acquiring its former sites cheaply. That's the way real-estate works. Control of a site is a localized but complete monopoly.

brudgers 10y ago

Suburban Walmarts are typically cheap buildings on cheap pieces of land. Simple [though quality] standardized construction, large open spaces, minimal finishes and specialty contractors keep construction costs low. The ability to create a destination on land of its choosing keeps land costs low: a Walmart is desirable to real-estate developers because it creates value in the surrounding parcels and Walmart is in a strong negotiating position because there is little demand for the parcels that it can utilize. Not to mention, scale lets Walmart employ a lot of professional expertise. The primary market for abandoned Walmart sites is Walmart', a company like Walmart seeking to compete with it directly. Walmart improves its short and long term prospect by preventing Walmart' from acquiring its former sites cheaply. That's the way real-estate works. Control of a site is a localized but complete monopoly.