Thanks, really interesting on the price increase over 5 years that can be attributed basically entirely to the completed permitting. A bit off topic, but reminds me of the recent paper about development in LA and the relative cost of vacant unpermitted land vs vacant land that has been through permitting. In that study they were able to calculate a 50% value increase from permitting alone, or $48/sf.
If you want to build something in Los Angeles County, waiting for a permit takes time — and now there’s a study estimating the cost of that wait. Researchers find that vacant land with an approved building permit sells for…
cayimby.org
I don't think Breakthrough would view this as a "good deal" but compared to (a) holding it and paying taxes or (b) building out an empty lab, seems like a decent outcome for them. And for Gillette, in a high interest rate/yield environment and with an essentially flat stock price over the last 5 years, not a bad deal for them either.
Still, to the point above, if the total buildout is estimated to be $1B, then that means $900M will be in construction, equipment purchases and other improvements. Real investment in a great location. Assuming all of the resilience and channel frontage improvements will be carried by Gillette as well.
