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> Bulk foreclosures and massive vacancies will hurt landlords and lenders respectively. Will they? At least for commercial real estate in large cities where sh
by Mediterraneo10 6y ago
> Bulk foreclosures and massive vacancies will hurt landlords and lenders respectively.
Will they? At least for commercial real estate in large cities where shops are going bust due to high rents, it is often claimed that owners are fine with letting the space stay unoccupied for long periods of time, because they are playing some kind of long game.
- AlgorithmicTime 6y agoThat "long game" requires a landlord with particularly high reserves to pay the property's expenses AND an expectation that the return from selling the property down the line will be greater than the missed rent.
- Spooky23 6y agoThe tax system is architected to benefit commercial landlords. The government basically pays you to hold underutilized property, as you can use the losses to offset income in other parts of the business at a premium rate. On top of that, property taxes are usually based on revenue, so holding property is cheap. I did work for a guy who owned a bunch of vacant lots that paid less taxes than my house. He "rented" the lots to some other affiliated company, who in turn made a bunch of money on parking, etc. The tiny tear that I would shed for real estate people is smaller then even cable and telephone companies.