Eli5: Why are so many office blocks and retail shops in UK that are ” to let” remain empty for months, rather than to reduce rent ? Why do landlords do this?

Question

Eli5: Why are so many office blocks and retail shops in UK that are ” to let” remain empty for months, rather than to reduce rent ? Why do landlords do this?

In: 1189

Answer 1

Lots of business reasons. Several unrented months would cost less than years of substandard rent, plus the leaving occupant may be obligated to pay out the remainder of the lease until it is rented, so there is no financial need to discount, as there is no loss occurring.