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A comment on Pinterest cancels office lease in unbuilt project, citing work-from-home shift. Parent comment

Re:Pinterest cancels office lease in unbuilt project, citing... by treyfitty on Saturday August 29, 2020 @09:47AM (#24316065)
There’s evidence of properties in NYC which have been vacant for 7+ years. These properties, even with the pandemic, have not budged their rent. They simply do not care if they’re not making money. They would rather preserve their capital, bank on appreciation, and not deal with tenants than fall prey to deflationary pressures.

The only explanation is the prevalence of some form of money laundering, an area I’m not an expert in.

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Re:Pinterest cancels office lease in unbuilt project, citing... by jarym on Saturday August 29, 2020 @01:02PM (#24317525)
These property owners are going to become like the Bitcoin HODLers. Their approach is sound as long as they are just riding out bumps in an economic cycle but will fall apart when their is a societal shift.

Commercial real estate is going the way of the newspaper industry - it will not go away, there will remain some successful examples, but the industry as a whole will be decimated.

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Re:Pinterest cancels office lease in unbuilt project, citing... by JumpCrisscross on Saturday August 29, 2020 @01:23PM (#24317719)
> They would rather preserve their capital, bank on appreciation, and not deal with tenants than fall prey to deflationary pressures

New York and San Francisco laws capping rent increases also deter rent decreases. Particularly if the decrease might wind up being temporary.

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Re:Pinterest cancels office lease in unbuilt project, citing... by Guthur on Saturday August 29, 2020 @08:23PM (#24320366)
They are reluctant to move the rent because commercial property value is highly dependent on the "perceived" rental value. Locking in low rents instantly wipes out the buildings value.
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Re:Pinterest cancels office lease in unbuilt project, citing... by vmception on Saturday August 29, 2020 @01:17PM (#24317659)
that's not the only explanation. they are plenty of lit market public policy outcomes that promote irrational markets.

its better that you aren't an expert in the lit market or the dark markets, god forbid the people form enough consensus to actually change it.

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Re:Pinterest cancels office lease in unbuilt project, citing... by pstuart on Saturday August 29, 2020 @12:20PM (#24317173)
Not an expert either, but money laundering does seem to like real estate.
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