Why is commercial real estate so often vacant during recessions? Even if there’s really low demand, wouldn’t landlords still prefer to lower the price until someone accepts, and make a little money rather than none? This Reddit explainer says no, because of quirks of how banking works.

submitted by Chipit from old.reddit.com

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[–][deleted] 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (2 children)

better to have an apartment vacant than let undesirables into it, they'd wreck the place and likely not pay. They raise rents to keep out the riff raff. commercial or residential, same idea.

[–]Chipit[S] 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (1 child)

This has nothing to do with the topic.

[–][deleted] 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (0 children)

nah it's the exact point