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Lower rents or building values means businesses leasing/purchasing those buildings have more money to invest elsewhere. It could be argued that the capital will
by MoreSoap 4y ago
Lower rents or building values means businesses leasing/purchasing those buildings have more money to invest elsewhere. It could be argued that the capital will be used to drive a real ROI… something that rent does not provide.
- ajmurmann 4y agoThat's in the long run though. The "destroyed value" was an evaluation based on future rental income. In a way the valuation puts a price tag on the assumed future return on purchasing the property. Someone else is now not paying that rent, but they didn't get a lump sum transfer of that valuation in cash.