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Sure. But if you took out a huge mortgage to buy your ice cream business based on anticipated sales, there are certain prices you cannot go below without going
by legitster 3y ago
Sure. But if you took out a huge mortgage to buy your ice cream business based on anticipated sales, there are certain prices you cannot go below without going bankrupt.
In a way, this is worse with real estate. With ice cream you can always make up losses with volume (to a certain extent). With real estate you have a fixed supply.
Moreover, if you drop the price to get a new tenant, you implicitly drop the price for all existing units as well.