The whole commercial market has been inflated for decades. Not just offices but shops too. Companies who refuse to lower rents, because it would lower the value of their property, despite it being empty for months or even years.
It’ll be interesting to see if it finally crashes.
I do hope they don’t simply deregulate and turn these properties into overpriced housing. They’re often unsuitable for that purpose.
Part of the problem is that their mortgage usually sets a minimum price per square foot. That means that if the market crashes, the landlords can’t lease for market price without getting their investors to approve. That’s part of the reason why there’s so much empty space, because prices haven’t come down much.
The whole commercial market has been inflated for decades. Not just offices but shops too. Companies who refuse to lower rents, because it would lower the value of their property, despite it being empty for months or even years.
It’ll be interesting to see if it finally crashes.
I do hope they don’t simply deregulate and turn these properties into overpriced housing. They’re often unsuitable for that purpose.
Part of the problem is that their mortgage usually sets a minimum price per square foot. That means that if the market crashes, the landlords can’t lease for market price without getting their investors to approve. That’s part of the reason why there’s so much empty space, because prices haven’t come down much.