Ah, so it's all speculation right! Hoping that one day some greater fool down the road will pay you even more.. sound's a bit like tulips
At some point, an actual return on capital deployed has to be made, else the smoke and sizzle eventually will disappear.
Now: will rents per KW double in the next 5 years, due to unprecedented demand?
If they do, NXT will actually start making a modest and perhaps acceptable return on capital deployed.
And possibly rents will!
But then again, maybe they won't either.
Rents per KW haven't materially changed yet in key markets, despite the demand and the hype.
Supply is going ballistic, as is demand, so how it will actually land in 5 years time is anyone's guess.
So it's all a bit of a gamble: Which of course, everyone is welcome to take.
Obviously, BlackRock is piling in like there is no tomorrow.
They are obvious a sharp bunch!
But then again, so was everyone over at Lehman Brothers 15 years ago..
I'm probably slightly less bearish now post the AT transaction, than I was a month ago, given the respect one has to have for BlackRock
But it's still too risky and expensive for me.
Best wishes all.
(20min delay)