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It's improved now, but after the financial crisis most high streets had a lot of empty shops. A lot of businesses went bust and the landlords raised the prices
by lucaspiller 11y ago
It's improved now, but after the financial crisis most high streets had a lot of empty shops. A lot of businesses went bust and the landlords raised the prices of the remaining tenants which forced more out. In poorer parts of the country it's still the case. Even the Starbucks in my hometown shut down!
- learnstats2 11y agoI don't really get why landlords are raising the prices if it's leaving their shopfronts empty. One possible motivation for this is indeed monopoly or collusion - if I own a significant percentage of the shopfronts, I can charge an unfairly high premium (and then I won't care if some remain empty). If I own just a few shopfronts, and compete with other landlords, I should care a lot if my shop remains empty.
- owen5819 11y agoIt may be different in the UK, but here in the US the landlords of shopping centers make mortgage payments only on the space actually rented. Lose a tenant, and their monthly bill shrinks. Yeah, it amazed me, too. However, the guy who explained it to me makes part of his living as a commercial landlord. I assume he knows the game.
- prawn 11y agoIn Australia, commercial property owners frequently leave properties empty for long periods to ensure they maintain the high asking price and avoid drops in the expected pricing.