3 ms·
The value of commercial property is a function of the cap rate. Cutting the rent thus cuts the principal value, which can often leave the property underwater.
by User23 6y ago
The value of commercial property is a function of the cap rate. Cutting the rent thus cuts the principal value, which can often leave the property underwater.
- asdff 6y agoThis is also why landlords lately are offering 1-2-3 months free on signing for these empty places, rather than dropping the base rent by 10-25% to get more tenants.