> landlords would prefer to have a building empty (not just class A office, but retail space too) then rent for a lower amount. Interestingly: I have heard tha

> landlords would prefer to have a building empty (not just class A office, but retail space too) then rent for a lower amount. Interestingly: I have heard that, for loans on commercial real estate, having vacant space with a high rent is better for the landlord than having a paying tenant and lower rent. Specifically, that banks: 1. Often allow the landlord to defer a fraction of the mortgage payment (proportional to vacant space) to the end of the loan 2. Often require an additional payment (to reduce the LTV) if the average rent of non-vacant units falls below the level when the loan was originated. So, landlords keep the space vacant because a) they can; and b) reducing rent means they have to pay the bank extra money they may not have.