Land is an easily leveraged asset. While an individual can only typically borrow 80% of the value, a bank/investment operation could easily leverage the land to

Land is an easily leveraged asset. While an individual can only typically borrow 80% of the value, a bank/investment operation could easily leverage the land to 95%+. Given that property is returning 8% in competitive districts, all the landlord really needs is for the property to make better than 3% return to make money from ownership. Actually leasing the property or maintaining it simply adds costs to the arbitrage.