4 ms·
It's the same everywhere. Right now everyone in the chain is squeezing the level below them for as much as possible. The coffee shop near where I work is a sma
by spiralpolitik 3y ago
It's the same everywhere. Right now everyone in the chain is squeezing the level below them for as much as possible.
The coffee shop near where I work is a small business and their landlord increases the rent regardless of market conditions. At some point they either close up, putting 2-3 people out of work, or end up charging $10 per cup of coffee.
Right now there is no market counter force against the rent increases. There are many empty units but the landlords keep the rent high to keep the value of the building high. There is no penalty for keeping the unit empty even if there is demand for the unit at a lower price point.
- Spooky23 3y agoOh yeah, at the national level politics has weaponized tax policy to be a transfer payment to real estate interests. For small time shitty owners, they run off the books and write down “losses” while letting property crumble. In the legit economy, it’s like a variant of the Great Eskimo Tax Scam. It’s going to get crazier too - hundreds billions of dollars of real estate is underwater in NYC alone, and banks hold 60-70% of the paper.