(Thread IKs:
skooma512)
|
Thoguh posted:There have been multiple businesses in my mid sized city that have closed down in the last year or so with the news article about it straight up saying "Our lease was up and with the new terms it just didn't make sense to stay open". Plus a few other businesses that moved from 20+ year old storefronts to a new location across town because of rent hikes. I have to imagine this has to hit rental prices at some point. How can you continue to run a rental empire if people stop renting in the city?
|
#
?
May 4, 2023 19:06
|
|
|
|
| # ? Jun 7, 2024 23:26 |
|
|
"Im weighing my options", I say, as a tiger devours my face
|
|
#
?
May 4, 2023 19:07
|
|
|
When I was working in the mall near me in the 2007ish range it cracked me up how loving immensely stupid Simon Malls is. So we were having massive construction on the side of the mall - upgrading or some poo poo. And instead of lowering rents, Simon raised them by like 25%. So mall traffic is down because no one wants to deal with a life construction zone and parking is limited so all the stores are making less money and Simon Malls truly expected all the little small businesses and carts to come up with cash. I worked for 2 different small businesses at the time - not anchors - just some like itty bitty clothing store and then a specialty kitchen goods store. Both of the small businesses I worked for were driven out with in like 2 years and i honestly dont think anything ever refilled the spaces and now the whole mall is being torn down and it was replaced as the new kraken ice practice arena. lmao. lol.
|
|
#
?
May 4, 2023 19:08
|
|
|
Oglethorpe posted:lol hmm thats a lot of money for a bank i've never loving heard of to have
|
|
#
?
May 4, 2023 19:08
|
|
|
Morbus posted:"Im weighing my options", I say, as a tiger devours my face weighing my stock options and somehow theyre reversing gravity
|
|
#
?
May 4, 2023 19:09
|
|
|
anime was right posted:if theyre closing because of "crime" and its not unionization, its absolutely because the space is too expensive (insurance and/or rent) and they just want to jerk off cops and not look like failures also who the gently caress is going to union square to shop at marshalls
|
|
#
?
May 4, 2023 19:09
|
|
|
Speaking of jerking off cops, the new Chik Fil A [*hated foe] gave out the free Chik Fil A for a year vouchers, not to people coming in the first day, but to police officers and firemen and random high school students (probably ball throwers). My partner was pissed, I told her it was just their way of paying off the local gang for protection.
|
|
#
?
May 4, 2023 19:10
|
|
|
Raccooon posted:Yeah Starbucks did this in my area to stores that had no crime in the area and had tons of customers every day hmm, same here... im seeing a pattern 
|
|
#
?
May 4, 2023 19:12
|
|
|
Oglethorpe posted:lol buy the fuckin dip
|
|
#
?
May 4, 2023 19:12
|
|
|
Raccooon posted:I have to imagine this has to hit rental prices at some point. How can you continue to run a rental empire if people stop renting in the city? The city will pay the landlords if that program in san francisco is any indication
|
|
#
?
May 4, 2023 19:14
|
|
|
Raccooon posted:I have to imagine this has to hit rental prices at some point. How can you continue to run a rental empire if people stop renting in the city? all of these companies are leveraged to poo poo, rent can never go down because that affects building valuations and brings the entire house of cards down.
|
|
#
?
May 4, 2023 19:14
|
|
|
Simon is ridiculous, a teen got shot and killed in the mall I used to work at and the whole mall got locked down because they thought it was a mass shooting but they never closed and were open the next day. They told the managers that “this violence will not stop us”. People got ptsd because they thought they were going to get killed and had to come in to work the next day.
|
|
#
?
May 4, 2023 19:15
|
|
|
Still lolling that Yellen was directly asked after SVB if this would destroy regional banks and she acted like a doddering old person that could barely speak.
|
|
#
?
May 4, 2023 19:15
|
|
|
zetamind2000 posted:The city will pay the landlords if that program in san francisco is any indication Such is life in Constitutional Oligarchy with Market Characteristics
|
|
#
?
May 4, 2023 19:16
|
|
|
Raccooon posted:Still lolling that Yellen was directly asked after SVB if this would destroy regional banks and she acted like a doddering old person that could barely speak. Acted?
|
|
#
?
May 4, 2023 19:16
|
|
|
Pittsburgh Fentanyl Cloud posted:all of these companies are leveraged to poo poo, rent can never go down because that affects building valuations and brings the entire house of cards down. This just sounds like a delaying action of the inevitable.
|
|
#
?
May 4, 2023 19:16
|
|
|
Raccooon posted:This just sounds like a delaying action of the inevitable. congratulations, you are smarter than most people working in commercial real estate management
|
|
#
?
May 4, 2023 19:17
|
|
|
Raccooon posted:I have to imagine this has to hit rental prices at some point. How can you continue to run a rental empire if people stop renting in the city? You get the government and whoever is left to force everyone back to the office for no reason other than to support this rental empire. Source: Gov. Hochul and Mayor Adams
|
|
#
?
May 4, 2023 19:18
|
|
|
skooma512 posted:You get the government and whoever is left to force everyone back to the office for no reason other than to support this rental empire. Source: Gov. Hochul and Mayor Adams theres actually another reason: commercial real estate fuels an enormous amount of city funding. so the cops wont have money anymore. (they will just steal from everything else and pay cops anyway)
|
|
#
?
May 4, 2023 19:20
|
|
|
Pittsburgh Fentanyl Cloud posted:all of these companies are leveraged to poo poo, rent can never go down because that affects building valuations and brings the entire house of cards down. I imagine that there are some individual landlords or investment firms that are in a position where they just take a hit on the building valuation without it bringing down their entire operation that they'll be the first to blink and start lowering rents. And once they do that then that's when the insanely leveraged operations will start crumbling.
|
|
#
?
May 4, 2023 19:20
|
|
|
Pittsburgh Fentanyl Cloud posted:all of these companies are leveraged to poo poo, rent can never go down because that affects building valuations and brings the entire house of cards down. yeah, its better for those firms to leave the rents at that level, or even raise them, on completely vacant buildings than ever dropping rents e: you can borrow against the valuation and if you fall behind the creditors will seize the building and you (the person behind the desk) are safely behind limited liability and drew your salary for however many more years than you would have if you tanked the company immediately
|
|
#
?
May 4, 2023 19:21
|
|
|
Thoguh posted:I imagine that there are some individual landlords or investment firms that are in a position where they just take a hit on the building valuation without it bringing down their entire operation that they'll be the first to blink and start lowering rents. And once they do that then that's when the insanely leveraged operations will start crumbling. trhis is why they burned all the buildings to the ground in the 70s instead
|
|
#
?
May 4, 2023 19:21
|
|
|
skooma512 posted:Acted? lol yeah they just had not thought out that far even though that being the next thing to happen was the most obvious thing imaginable. Just like Biden didn't intend to kickstart de-dollarization by cutting Russia off from SWIFT it just did not occur to anyone in charge that was would be the immediate outcome.
|
|
#
?
May 4, 2023 19:22
|
|
|
anime was right posted:theres actually another reason: commercial real estate fuels an enormous amount of city funding. so the cops wont have money anymore. They pay taxes? That's just unAmerican
|
|
#
?
May 4, 2023 19:23
|
|
|
atelier morgan posted:yeah, its better for those firms to leave the rents at that level, or even raise them, on completely vacant buildings than ever dropping rents Completely vacant building's valuation based on a rental price that no one will pay lol
|
|
#
?
May 4, 2023 19:23
|
|
|
Thoguh posted:Like what the downtowns of countless small towns in rural places look like but writ large. Yeah, hope you like empty storefronts
|
|
#
?
May 4, 2023 19:23
|
|
|
NFT rear end economy.
|
|
#
?
May 4, 2023 19:24
|
|
|
Thoguh posted:lol yeah they just had not thought out that far even though that being the next thing to happen was the most obvious thing imaginable. Just like Biden didn't intend to kickstart de-dollarization by cutting Russia off from SWIFT it just did not occur to anyone in charge that was would be the immediate outcome. Has this started to happen? Like with the recent story of a downtown SF building being sold at like $60 million when it was around $300 million pre-covid
|
|
#
?
May 4, 2023 19:24
|
|
|
silicone thrills posted:Both of the small businesses I worked for were driven out with in like 2 years and i honestly dont think anything ever refilled the spaces and now the whole mall is being torn down and it was replaced as the new kraken ice practice arena. lmao. lol. swapped one useless waste of space for another
|
|
#
?
May 4, 2023 19:25
|
|
|
Pittsburgh Fentanyl Cloud posted:congratulations, you are smarter than most people working in commercial real estate management I'm sure they know, but their paycheck depends on delaying the inevitable as long as possible.
|
|
#
?
May 4, 2023 19:27
|
|
|
Raccooon posted:Has this started to happen? Like with the recent story of a downtown SF building being sold at like $60 million when it was around $300 million pre-covid But it never sold for $300m. It was "valued" at $300m. https://sfstandard.com/business/san-franciscos-famed-california-street-is-selling-at-a-deep-discount/ The $300m value was never real, they're doing the Magic card thing but with real estate
|
|
#
?
May 4, 2023 19:28
|
|
|
RealityWarCriminal posted:swapped one useless waste of space for another The kitchen goods store was actually kind of useful because it was that niche for people who wanted to do more cooking/baking/making neat stuff but not quite need to hit the restaurant store. Taught me a poo poo ton about cooking as a dumbass 19 year old. Also instead of pizza parties for staff morale we got knife parties where wustof would come in and give us free knives and pans. Still using them to this day. lol
|
|
#
?
May 4, 2023 19:29
|
|
|
there will eventually be a time when an occupied building generates more money than an empty one but I'm not sure we're there yet. an empty building is like an unrealized loss that you never want to realize.
|
|
#
?
May 4, 2023 19:29
|
|
|
Raccooon posted:This just sounds like a delaying action of the inevitable. ohhhhh you better believe that's a Thread Title
|
|
#
?
May 4, 2023 19:30
|
|
|
Pittsburgh Fentanyl Cloud posted:But it never sold for $300m. It was "valued" at $300m. That makes sense. Also, looks like SF is getting hit harder on this than other cities. https://www.businessinsider.com/san...0The%20Journal. "The building's expected decline in value reflects the current crisis facing the real-estate industry across the US, and remote work's heavy impact on San Francisco's office buildings, in particular. Almost 30% of the city's office spaces are available to lease, according to a report from CBRE, a commercial real-estate-services firm. That's five times higher than it was before the pandemic, and almost twice as high as the amount of vacancies across the country. Over a quarter of San Francisco's office space is empty as well, according to CBRE."
|
|
#
?
May 4, 2023 19:30
|
|
|
JamesKPolk posted:giles correy voice: "more... basis points...." I LOVE THIS PLAN IM EXCITED TO BE A PART OF IT!1!1! 
BornAPoorBlkChild has issued a correction as of 19:42 on May 4, 2023 |
|
#
?
May 4, 2023 19:37
|
|
|
I'm a simple American. When I see a bank fail I just nod sagely and go "good."
|
|
#
?
May 4, 2023 19:40
|
|
|
JamesKPolk posted:giles correy voice: "more... basis points...." No stopping until 10% interest rates
|
|
#
?
May 4, 2023 19:41
|
|
|
skooma512 posted:Landlords in general are just parasitic drag on the whole economy. Business mostly rent their spaces and then they have to keep up with the rentier's demands for more money for absolutely no value-add, meaning they pass those costs on and go out of business because folks don't want to or can't pay the higher prices. triple net commercial leases really broke my brain zetamind2000 posted:The city will pay the landlords if that program in san francisco is any indication Seattle is about to start doing the same thing to try to reactivate downtown
|
|
#
?
May 4, 2023 19:52
|
|
|
|
| # ? Jun 7, 2024 23:26 |
|
|
cities generally don't have strong taxation powers, but are feeling the inflation and interest rates crunch just like everyone. one of the few ways they have to increase funds is by increasing the valuations of properties in the city.
|
|
#
?
May 4, 2023 19:58
|
|