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
As far as I can tell… Rich people would rather loose money than make “not enough money”. NYC has the same exact problem. They think the building is worth X per Y, and if they don’t get X, they get mad. So they’d rather just sit on the asset and do nothing with it. Rich people do not see their building as a building. They see it as an investment. So they think it’s fine to just sit on it and do nothing if they can’t leverage that asset for the wealth they “deserve”.
It’s kind of insane, and makes rents and market rates for real estate INSANE. So much so that IMO there should be a law preventing people from sitting on properties for more than a couple months.
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