Posted on 07/05/2022 7:55:03 AM PDT by george76
“Cause everything is Rent”
My son-in-law owns a company whose presence is on the internet. He has about 45 developers in his higher. Is least expired in January of 2021. That’s when he went full work from home and never looked back. He’s saving a ton of money on rent and he’s able to get developers from third tier markets. They’re more productive than they were when they worked in the brick and mortar.
Yep, taxes equal “rent”
In an environment where one out of every four small businesses is in delinquency on its rent, it would seem to me that commercial rents should be dropping like a stone across the board.
I wonder what the average salary is for whoever keeps track of Rent Delinquencies?
Only one solution to this... raise the rent.
Putin’s rent delinquency.
It seems to be all going to plan. Break the backs of small businesses and the Middle Class.
If rent delinquency went from 26% to 35%, the actual increase in delinquency isn’t 9%. It is 35%. Gigantic difference.
Commercial interests would rather tear down all the appurtenances on land rather than rent improved properties at a loss. Thus the improved properties become ever more scarce, resulting in either bidding the rents still higher, or moving to lease of land only, and the lessee builds the improvements necessary to conduct business, only to lose title to them altogether should the land lease end.
This is commercial rent related however in the residential world, I couldn’t believe how many applicants had literally NO source of income other than “I applied for UIB or welfare.” We live in an uber BLUE state where the “cancel rent” movement is growing by leaps and bounds.
Out of approx 80 inquiries, only one person qualified.
One trend I have noticed is government contractors abandoning their expensive commercial leases, going virtual, and renting a shared office space for a small price with conference facilities available as scheduled as needed.
Exactly right. Whoever wrote that article is missing a huge point.
1. It would seem to me that in a traditional commercial lease, the only properties that would rent "at a loss" even with a steep reduction in rent are those that were purchased or refinanced in the last 5-7 years.
2. A property tax appeal for a commercial property in rent default should effectively reduce the assessed value of the property to little more than the value of the land plus the salvage value of the improvements.
3. Conversions to residential use would seem to be an ideal alternative for any landlord in this situation.
In my experience commercial landlords are much less willing to have a tenant delinquent. How many of those 26% have been evicted?
Damn that Putin!
Some commercial landlords either get some benefit from having a non rented property or they are just plain greedy.
There is a stand alone building on the way into town here that was a thriving restaurant for years. The building sold and the restaurant refused to go along with the significant rent increase and shut down.
5 years later and the place has only been rented for a total of 1 year.
The difference in the two national rates is different by 9 points. The percentage increase is 35 percent, as you point out, but it’s not the same thing. You’re both right!
That is generally true, but if the reported delinquency rate is correct then commercial landlords may be seeing very few replacement tenants. In that situation it is easier to explain to the bank that you have a tenant who is planning to pay in the future than you have a vacant space with no prospects to rent it in the foreseeable future.
If the market is as dire as the article suggests then the landlord hasn't got much room to maneuver.
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