https://archive.is/2022.02.14-202112/https://www.economist.com/finance-and-economics/the-true-cost-of-empty-offices/21807703
Rather than lowering rents, landlords are offering more freebies than ever to retain tenants or attract new ones. In Manhattan, cash gifts for tenants—typically used for kitting out new office space—have more than doubled since 2016. Across America, the average number of rent-free months has risen to its highest since 2013. Some property developers remain optimistic, betting that demand for office space will eventually bounce back. But with each new variant of covid-19, plans for a wide-scale return to the office have been delayed, and delayed again. And changing patterns of attendance look set to reduce the overall demand for space.
I live in a pretty big apartment complex spread out over four buildings.
All the ground floor units were designated commercial when the complex was created.
The landlord's soon found they couldn't rent out the ground floor units at the rate they hoped.
Instead of lowering their asking price for rent, they have spent the past 3 years lobbying our buildings associations to allow the empty ground floor units to be used for residential purposes (and failing).
They have used all sorts of dirty tricks, including pamphlets under the door of residential units claiming levies will increase if their motion doesn't pass.
They would literally rather make no money, than allow someone to rent their units for less than what they erroneously believe they are worth.
"the market is the best arbiter of prices, unless the market calls up prices that mildly inconvenience me in my attempt to get rich off other people's work :porky-happy: "
They got a loan with that rent price on it. If they lower the rent, they'd have to pay more of the loan back. So those rents are never, ever coming down.
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