01-08-2020, 01:31 PM
(01-08-2020, 12:50 PM)tomh009 Wrote:(01-08-2020, 08:28 AM)DK519 Wrote: I'd bet it comes down to the owner's willingness to deal with the hassle of renting it out vs. the ease of just leaving it vacant and letting the property appreciate.
The property values go up (or not) regardless of whether there is a tenant. Property taxes are almost the same in either case. And even without a tenant, you have some operational costs.
But if you have a tenant, you get rental income. Every landlord would prefer a bigger tenant (or smaller number of big tenants), so it's a question of balance, of trying to figure out how long you might have to wait for a dream tenant vs renting out half or quarter of the space, and subdividing it (which precludes getting that big tenant later).
That assumes that the land/property holder is motivated to have the property generate income via investment. Until recently (in some cases), that hadn’t been the case in DTK for decades.