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> you end up losing a bunch of floor space. You're losing 100% of the floor space when it's an unused commercial building.
by gumby 2y ago
> you end up losing a bunch of floor space.
You're losing 100% of the floor space when it's an unused commercial building.
- cduzz 2y agoI'm not sure your accountant would agree. An un or under-rented building has some potential value based on various hand-wavy factors. Things may get better next year and you've only lost a year's of potential revenue. You may be able to hand the burning bag of dog crap to some star-eyed dreamer. Taking out a loan, applying for permits, etc, locks in the loss. You get to tell your bank the asset they've got for collateral is worth a lot less, but hey you've got a plan that involves chopping the building apart so there are big holes in it so you can rent it to residents instead of commercial leases. Hey it's a brand new market and a wonderful opportunity to get in on the ground floor.