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"The buildings were old and had high carrying costs," he said.
"When you start adding up the carrying costs of money that can mean a lot."
Carrying costs are low because of a 10-year tax abatement.
"No one wants to hold inventory, especially at current carrying costs, until the end of the year," he said.
As a result, Berkshire's carrying costs are only about 4 percent.
Because of their age, they also represent higher carrying costs in pension and medical benefits.
But, she said, sales will depend on the monthly carrying costs.
At those prices, carrying costs for a mortgage are far higher than could be paid by use of the land as a farm.
And on top of that you've got to look at the carrying costs, which will average about $3.5 billion a year.
The futures price includes carrying costs, such as storage charges.
"We can offer those lower prices now because every sale lowers our carrying costs," he said.
Other carrying costs include real estate taxes, which are fully deductible.
When it comes to carrying costs are the tax deductions lessened?
Moreover, he had an additional year of carrying costs.
The seven sales have lessened his carrying costs, he said, and should tide him over.
And I can't rent it for anything near my carrying costs."
Tax abatements, or the lack of them, can make a big difference in monthly carrying costs.
Rather, they say, it is wiser to find someone to rent the space temporarily to help cover carrying costs.
And carrying costs for buyers should be lower.
"That's an awful lot of carrying costs," he said.
Loan rates, equipment financing and contractor carrying costs are now at acceptable levels.
The extra income, of course, helps offset carrying costs like the mortgage, taxes and insurance.
And a future buyer may not have the luxury of justifying the higher carrying costs against the bargain price.
The buyer's carrying costs are partially offset by income from a rental apartment.
Rental income may not fully cover their carrying costs but it slows the bleeding.