Exactly. the owners go bankrupt. It's auctioned for a present price that looks like a bond of it's future cashflows. This is why rent doesn't always track purc

Exactly. the owners go bankrupt. It's auctioned for a present price that looks like a bond of it's future cashflows. This is why rent doesn't always track purchase prices. People who bought a long time ago, or are picking up distressed assets have a lower capital base than those who bought recently or at peak prices. Because they have a lower capital base they only need to compete with, on a risk adjusted basis, with other recurring revenue investments (like bonds). Now, because bond rates have sky rocketed recently, that means the value of the buildings has plummeted (remember risk adjusting). If a building value has plummeted, and it's vacant, the owner has a good chance, potentially an incentive to just walk away from it.