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A comment on Amazon to hire 100k warehouse and delivery workers. Parent comment

Re:Amazon to hire 100k warehouse and delivery workers by opportune on Monday March 16, 2020 @09:17PM (#22600428)
At an aggregate level it can make more sense to leave X% of units vacant than to lower prices (which could have effects on the rate you can charge with the rest of your units). I think it’s an example of our financial system not working as intended.

For example let’s say I have a 100 unit apartment building. If I maintain a 20% vacancy rate target I can charge an average of $1000/mo/unit. But to set a price at which my vacancies get filled very quickly, to hit a 5% vacancy rate, maybe I need to charge $700/mo/unit. In that case I’m making less money than before - $80k/mo vs $66.5k/mo.

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Re:Amazon to hire 100k warehouse and delivery workers by leetcrew on Tuesday March 17, 2020 @09:21AM (#22604609)
why wouldn't you just price discriminate through short-term concessions to fill the remaining 20% and increase revenue? this seems to be what most apartment buildings around me actually do.
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Re:Amazon to hire 100k warehouse and delivery workers by opportune on Tuesday March 17, 2020 @03:53PM (#22609529)
That is what people do sometimes (esp. in SF where you'll get "2 months free rent"). But I think in commercial real estate the math is a bit different because leases tend to be longer - so you really don't want to budge on the actual monthly rate and even 1-2 months free doesn't end up helping the prospective tenant that much
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