Office Vacancy Rate in San Francisco Just Hit a New High

Re:Office Vacancy Rate in San Francisco Just Hit a New High by pclmulqdq on Tuesday October 18, 2022 @11:24AM (#33248731)

Not necessarily. B wins if you depend on the value of the property for some reason or another. Commercial properties are valued based on the net present value of the rents you can get. If you pretend that you can get a higher rate than the market will bear, you can keep the valuation of your building up during a downturn. If you accept the lower-paying tenant, you lower the perceived valuation of the building. This only matters if you have a commercial mortgage... which is every building these days.

This is utterly stupid, but it is driving rental vacancies in NYC.

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Re:Office Vacancy Rate in San Francisco Just Hit a New High by iancmceachern on Tuesday October 18, 2022 @11:25AM (#33248765)

I totally agree its dumb, like a lot of the water rights laws that actually require wasting of water.

I would say then the solution is to reform those laws, while we're at it we should reform the property tax laws in California.

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