San Francisco, Silicon Valley rents plunge amid downturn

Re:San Francisco, Silicon Valley rents plunge amid downturn by imtringued on Monday June 01, 2020 @04:37PM (#23383483)

Also incumbent landlords who are sitting on paid off properties. A landlord with an old building has less vacancies if he doesn't have to compete with new construction.

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Re:San Francisco, Silicon Valley rents plunge amid downturn by dan-robertson on Monday June 01, 2020 @07:12PM (#23385185)

That doesn’t make sense to me. If a landlord wanted the advantages of low vacancies due to low rent, why not just lower the rent?

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Re:San Francisco, Silicon Valley rents plunge amid downturn by kevin_thibedeau on Monday June 01, 2020 @09:10PM (#23386082)

They also need to maintain resale value when they decide to let the property go. These are investment vehicles first. Homes second.

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Re:San Francisco, Silicon Valley rents plunge amid downturn by chrischen on Tuesday June 02, 2020 @12:13AM (#23387355)

I'm not sure it works that way. I'm no landlord, but property tax is not subject to rent control reductions as far as I know. The primary beneficiaries of rent control are the people who are the renters, and are often able to extract value out of it from buyouts in the tens of thousands of dollars to as much as hundreds of thousands of dollars.

In a city like SF, vacancies is not a thing. Actually for that matter, in any market the market price is some equilibrium price that gives a certain vacancy rate.

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