11-14-2015, 11:04 AM
I made that comment as a joke, hence the smiley at the end. Of course we should all feel free to offer our opinions and enter into vigorous discussion. If I offended you in any way then I apologize.
Now re the Ottawa St property. Evidently no developer was willing to step up and develop it. Not even George who bought it in 2012 when the LRT wasn't yet a sure thing and who thus presumably paid a lot less than Wright just did. My inference is that with all the other development along the route no one wants to further inflate what may turn out to be, at least in the shorter term, a RE bubble. So for the time being the land will be put to productive, if not ideal, use. Surely this is a lot better than letting the land lie fallow for another several years.
By buying the property now Wright gets something he can use to expand his business. There was already a car dealership there so he can reuse the existing building and infrastructure with minimal improvement. And thus he gets to continue to expand his economic contribution to the community. What's not to like with that?
But in addition to this benefit Wright now also has the option to repurpose and redevelop this property in the future as post-LRT demand materializes and RE prices rise. Car dealerships require a lot of relatively undeveloped real estate to serve as what's effectively a giant parking lot. Consequently as property values rise it becomes more economical for them to relocate to the suburbs where land is cheaper. (There used to be several large car dealerships at major intersections along Yonge St in Toronto. Where are they now? Are there any left on Yonge St within the city proper?)
So here's some wild speculation. At some point Wright may find it profitable to relocate the Ottawa St operation and sell the property at a large profit. He wins twice, first by expanding his current business and then again when he next expands it. Sounds to me like he's making a very smart move.
Now re the Ottawa St property. Evidently no developer was willing to step up and develop it. Not even George who bought it in 2012 when the LRT wasn't yet a sure thing and who thus presumably paid a lot less than Wright just did. My inference is that with all the other development along the route no one wants to further inflate what may turn out to be, at least in the shorter term, a RE bubble. So for the time being the land will be put to productive, if not ideal, use. Surely this is a lot better than letting the land lie fallow for another several years.
By buying the property now Wright gets something he can use to expand his business. There was already a car dealership there so he can reuse the existing building and infrastructure with minimal improvement. And thus he gets to continue to expand his economic contribution to the community. What's not to like with that?
But in addition to this benefit Wright now also has the option to repurpose and redevelop this property in the future as post-LRT demand materializes and RE prices rise. Car dealerships require a lot of relatively undeveloped real estate to serve as what's effectively a giant parking lot. Consequently as property values rise it becomes more economical for them to relocate to the suburbs where land is cheaper. (There used to be several large car dealerships at major intersections along Yonge St in Toronto. Where are they now? Are there any left on Yonge St within the city proper?)
So here's some wild speculation. At some point Wright may find it profitable to relocate the Ottawa St operation and sell the property at a large profit. He wins twice, first by expanding his current business and then again when he next expands it. Sounds to me like he's making a very smart move.