What perplexes me

Aug 19, 2024

There is no shortage of aspects of the world around us that I fail to understand.

Why are there people who inject poison into their face because some influencer thinks it is a good thing?

Why do we throw criminals into jail with other criminals so they can learn more about being a criminal, without making any attempt to teach them how to be a useful  part of society?

Why are there so many Americans who think that the idea of Trump is a good one?
 
There is plenty more about contemporary society that is baffling.

But, closer to home, I try, but fail to understand why industrial property valuers place a higher value on office space than warehouse/factory space – irrespective of the proportion of each.  A building with a high proportion of office (compared to warehouse/factory ) will be valued at more than the same sized building with a lower proportion of office. When arguably the reverse should be the case. The high office content building will not only be a higher rental valuation – but because of the lower content  of industrial space , i.e. warehouse/factory, it will be less in demand, and more difficult to lease. In an age where we rely on computers, the cloud, software as a service, zoom and the like, the demand for office space in the industrial world, is constantly reducing. As a hangover from times when we needed more desk space, many industrial buildings are over-officed. But valuations don’t tend to reflect this reality – and therefore act as a dis-incentive to have buildings re-configured.
 
I am indeed perplexed by this.

But perhaps I would be better to ponder why so many people are fascinated by what people who are famous for being famous do in their private lives. That’s arguably easier to understand.

 


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