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If adjacent space is less valuable, the landlord is motivated to raise Amazon's rent to compensate Real estate is very much driven by supply and demand. Mores
by reaperducer 2y ago
If adjacent space is less valuable, the landlord is motivated to raise Amazon's rent to compensate
Real estate is very much driven by supply and demand. Moreso than many other industries. If the adjacent space is less valuable, it gives Amazon leverage to lower its rent.
- therockspush 2y agoYou're right about Amazons leverage. In Santa Clara county we have our local behemoths trying to get their property valuations dropped. https://www.bizjournals.com/sanjose/news/2024/11/08/tech-google-county-property-tax-billions-appeals.html https://www.bizjournals.com/sanjose/news/2024/11/08/tech-goo... The way commercial real estate lending is tied to lease rates usually means its almost impossible for them to go down unless you operate at these scales. Most commercial landlords around me would rather have prime main street spots stay empty than refinance because of lower lease rates.
- deleted 2y ago[deleted]