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I 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 collusio
by learnstats2 11y ago
I 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.