Posts Tagged ‘HFT’

Another example of location value

Don’t know if fair use permits me to use Bloomberg’s picture, so here’s a goose in Aurora, maybe somewhere near the site of interest. Image credit: Kenneth Cole Schneider (CC BY-NC-SA 2.0)

Just in case anybody doubts that location has value in the 21st century, here’s a report from Bloomberg about a 31-acre Aurora parcel that became valuable because it’s adjacent to the CME Group‘s data center, enabling one to trade a millionth of a second faster. The site sold for $14 million, “probably twice as much as it’s worth” according to a local real estate exec. I would argue that it must be worth $14 million, else the buyer would not have paid it.

The article reports a couple other nearby deals, but provides no parcel numbers nor even a map, so we can’t see what the assessment of this parcel is.  There’s also no indication who the seller was.