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Denver is littered with surface parking lots. This is due to the relatively recent spike in value. There is no way you could buy the property now and operate a
by goobynight 7y ago
Denver is littered with surface parking lots. This is due to the relatively recent spike in value.
There is no way you could buy the property now and operate a parking lot, but they got in when it was cheap, so it's all profit now.
- kbutler 7y agoIf the land could make more profit with another use, that profit is a net loss (opportunity cost).
- goobynight 7y agoSure, but they believe the market isn't at the top. Opportunity cost could continue to increase until they cash out. That is, maybe they could sell for $10 million now vs making $200k per year on parking, but if they hold on for another 5 years, the offers could rise to $15 million.