I think you might be missing the context. The scenario we're discussing is a parking lot surrounded by skyscrapers in the middle of a major city. Under a property tax regime, the owner pays little taxes because the structures on the lot are not valuable. Under an LVT, the owner pays the same (high) taxes as the skyscrapers next to it, which would be obvious uneconomical.

So under property taxes, the parking lot owner can afford to wait and have the lot sit empty; under an LVT, they have an incentive to develop.