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Commercial property often has really long leases, like 10-20 years. So one reason it may sit empty is that an investor thinks a slump will be short & doesn't wa
by iguy 8y ago
Commercial property often has really long leases, like 10-20 years. So one reason it may sit empty is that an investor thinks a slump will be short & doesn't want to be tied to a low-rent tenant. (Or doesn't want to break up a large space for small tenants, to wait for a large one... or because they are thinking of knocking it down & building housing, etc.)
I'm dubious that people in real-estate can't understand local prices, I mean within London there are vast differences by street-by-street. I'm also dubious that empty properties & claims about what they could rent for will fool many people.
- KineticLensman 8y ago> I'm dubious that people in real-estate can't understand local prices IIUC, it's not that they don't understand local prices, they instead don't care. At this scale the landlord's focus is investors in the property portfolio, not people who might actually use the property.
- iguy 8y agoI get that the CEO doesn't know everything, but why doesn't bigger scale just mean more people below that? There must be someone who knows about each property, in or outside the company... there are agencies who hustle to rent out student flats, every year. Why not here?