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A lot of those five-year contracts were negotiated before Covid and I suspect they will expire in the next year or two. After a certain point, the building owne

A lot of those five-year contracts were negotiated before Covid and I suspect they will expire in the next year or two. After a certain point, the building owner will have to choose between lowering rents, or having the building foreclosed on due to having no tenants. Also, at the beginning of Covid, several big businesses just refused to pay retail rent as a negotiating tactic. It would not surprise me if that happens again.

latchkey 3y ago
I'm not talking about past, I'm talking about current and future. "Why would a landlord lower the rent now to a small business" now.
- ImPostingOnHN 3y ago
  as the post you responded to said: > After a certain point, the building owner will have to choose between lowering rents, or having the building foreclosed on due to having no tenants
  - latchkey 3y ago
    Except that isn't their only choices. It'll depend on their finances as well as the market futures. Many many buildings sit empty for ages for a whole bunch of different reasons. Can't just generalize into a binary like that.
    - ImPostingOnHN 3y ago
      given the choice between no money and money, most will choose money, and no amount of 'it depends' will change that the fact that some people let some buildings sit empty for some time doesn't mean most will let most sit empty for most of the time after all, the next best alternative for building owners is foreclosure or abandonment or sale at a loss, the next best alternative for businesses is 1 of a thousand different places, or just a remote workplace
      - latchkey 3y ago
        > given the choice between no money and money, most will choose money They might not have the choice. Nobody is going to rent ground floor retail space in an area with no foot traffic. It is a race to zero all around.
        ImPostingOnHN 3y ago
        > Nobody is going to rent ground floor retail space in an area with no foot traffic of course they will, at a low enough rent, obviously, which is the point: lowering rent is indeed a choice, as is going bankrupt, abandoning the property, foreclosure, or selling it at whatever price
        latchkey 3y ago
        There is a ground floor retail spot near my house with a for-rent sign on the front, that has been empty for years. People have their reasons.
        ImPostingOnHN 3y ago
        in that case, the reason is that the owner failed to lower rent, declare bankruptcy, abandon the property, get foreclosed on, or sell the property let the owner rent it for a dollar a month and we'll see if it gets rented
        latchkey 3y ago
        You left out one other case... the owner wants a specific tenant or in the example that started this whole thread, a Chipotle.
        ImPostingOnHN 3y ago
        who cares what the owner wants? the owner probably wants a billion dollars and a pony, too, but what they can have are the options I listed the reason they don't have tenants is because their asking rent is too high and demand is low in capitalism, that means they should lower rent

latchkey 3y ago

I'm not talking about past, I'm talking about current and future. "Why would a landlord lower the rent now to a small business" now.

ImPostingOnHN 3y ago
as the post you responded to said: > After a certain point, the building owner will have to choose between lowering rents, or having the building foreclosed on due to having no tenants
- latchkey 3y ago
  Except that isn't their only choices. It'll depend on their finances as well as the market futures. Many many buildings sit empty for ages for a whole bunch of different reasons. Can't just generalize into a binary like that.
  - ImPostingOnHN 3y ago
    given the choice between no money and money, most will choose money, and no amount of 'it depends' will change that the fact that some people let some buildings sit empty for some time doesn't mean most will let most sit empty for most of the time after all, the next best alternative for building owners is foreclosure or abandonment or sale at a loss, the next best alternative for businesses is 1 of a thousand different places, or just a remote workplace
    - latchkey 3y ago
      > given the choice between no money and money, most will choose money They might not have the choice. Nobody is going to rent ground floor retail space in an area with no foot traffic. It is a race to zero all around.
      - ImPostingOnHN 3y ago
        > Nobody is going to rent ground floor retail space in an area with no foot traffic of course they will, at a low enough rent, obviously, which is the point: lowering rent is indeed a choice, as is going bankrupt, abandoning the property, foreclosure, or selling it at whatever price
        latchkey 3y ago
        There is a ground floor retail spot near my house with a for-rent sign on the front, that has been empty for years. People have their reasons.
        ImPostingOnHN 3y ago
        in that case, the reason is that the owner failed to lower rent, declare bankruptcy, abandon the property, get foreclosed on, or sell the property let the owner rent it for a dollar a month and we'll see if it gets rented
        latchkey 3y ago
        You left out one other case... the owner wants a specific tenant or in the example that started this whole thread, a Chipotle.
        ImPostingOnHN 3y ago
        who cares what the owner wants? the owner probably wants a billion dollars and a pony, too, but what they can have are the options I listed the reason they don't have tenants is because their asking rent is too high and demand is low in capitalism, that means they should lower rent