3 ms·

(earnest voice, not scoffing) How would that differ from the status quo? In both cases, the rent accepted is lower and the new valuation is based on it? Except

• glompers 3y ago
  Might differ in the way that it plays out across an entire regional office market. If deferring pain is no longer expected or even possible, then the market price should rise and fall to find the right price with fewer impediments to the local activities of commerce.
• CydeWeys 3y ago
  It would encourage buildings to lower asking rents as vacancy periods grow longer, rather than having incentives to leave a commercial unit vacant, as with my proposal they'd already be taking a hit to valuation anyway as soon as the unit went vacant, and a new tenant paying 80% of the last tenant's rent is still much better than leaving it vacant longer while it decays through 70%, then 60%, etc. So overall the market would be more efficient, rents would go downwards more quickly in terms of CRE downturns, and you'd have fewer vacancies with more units reaching a market-clearing rate.