Someone mentioned that for accounting reasons property portfolios may be better sitting empty than offering tenants a discount because their yields look bad?
In: Economics
One thing I’ve heard is that property valuation is at least partially based off the set rent price. So if they lower rents they end up re-valuing the property at a lower level which can cause other problems with their loans. So they’d rather take a hit on operating costs than a hit on asset valuation.
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