[HN Gopher] Office Landlords Use Cash Gifts, Loans to Inflate Bu...
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Office Landlords Use Cash Gifts, Loans to Inflate Building Values
Author : JumpCrisscross
Score : 37 points
Date : 2024-01-22 17:38 UTC (5 hours ago)
(HTM) web link (www.wsj.com)
(TXT) w3m dump (www.wsj.com)
| ProllyInfamous wrote:
| Dear LLs: as your commercial CDO^3's end up eating themselves
| [and assoc. real assets], will you please lessen-up on triple-net
| and rents? Capitalism "works both ways," and watching storefronts
| sit vacant for years with ridiculous rental terms is just
| astonishing.
| Workaccount2 wrote:
| It's because those rent prices are being used as collateral for
| other commercial real estate property loans. The rent price
| used is based on the rent the previous tenant paid, not the
| market value of the property.
|
| If the owner leases at a lower rent price, they will
| essentially get margin called on their other properties.
| Therefore it actually might make sense to just have the
| property sit vacant with a (now) ridiculous rental price.
|
| If governments start implementing a vacancy tax that grows as
| vacancy duration increases, essentially forcing the market to
| unstick, we'd likely see a rapid implosion of commercial real
| estate.
| dgfitz wrote:
| > If governments start implementing a vacancy tax that grows
| as vacancy duration increases, essentially forcing the market
| to unstick, we'd likely see a rapid implosion of commercial
| real estate.
|
| Doesn't sounds like a horrible thing, but perhaps I'm not
| understanding what the impact would be to us "regular folk"
| if the commercial real estate bubble popped.
| datadrivenangel wrote:
| Probably another recession for no good reason.
| therockspush wrote:
| Every time I explain this to people you see the 5 stages of
| grief go across their face, especially when it's a property
| that used to host their favorite restaurant or something.
|
| I sometimes have to go back and remind myself this is really
| happening, it's such bullshit.
| anotherhue wrote:
| Yup. Truly our representatives are not representing us.
| StreetChief wrote:
| How does this work? The rate and therefore _value_ is fixed
| in contract? Is that why the previous tenant rent is used and
| not a market rate?
| ethanbond wrote:
| Land Value Tax is the solution. Simply tax vacancy into
| oblivion and force landlords to put the land to productive use.
|
| The current dynamic is how economies seize up.
| koito17 wrote:
| https://archive.is/NdXMd
|
| ---
|
| Hate to be that guy, but WSJ is blocking Firefox on my end for
| unknown reasons, whereas with a base install of Chrome it loads
| fine after a "human verification" process. The only way I can
| view this with Firefox is through an archive link. Hope it helps
| others. Not sure if this is something new since I rarely browse
| WSJ.
| observationist wrote:
| It's DNS.
|
| Change your DNS to something else that isn't using CloudFlare
| and this won't happen. Cloudflare isn't compatible with
| configurations used by archive.is . You can search "cloudflare
| DNS hackernews" with your favorite engine to find extensive and
| comprehensive details about what's happening and why.
|
| Take control of your DNS - using your ISP's default never
| benefits you, and almost certainly benefits them, and almost
| certainly at the expense of your time, effort, and comfort.
| Find a DNS setup that you like that isn't using cloudflare,
| doesn't censor you, doesn't funnel you into walled gardens or
| censorship bubbles or otherwise try to position itself as a
| gatekeeper between you and the internet.
|
| Good luck!
| orf wrote:
| I quite like using cloud flare DNS, and the posturing in this
| comment is not helping whatever cause you think you have.
|
| > Cloudflare isn't compatible with configurations used by
| archive.is
|
| archive.is blocks cloudflare for non-technical reasons. The
| "configurations" mentioned is to block cloudflare.
|
| This also impacts private relay users, annoyingly.
| koito17 wrote:
| I think you have misunderstood what I said. Wall Street
| Journal -- the website -- is blocking me. Ironically, I use
| Cloudflare DNS and archive.is links now work, even though
| they used to be an endless captcha loop.
|
| The message I get from WSJ is the following. Note: the
| following does NOT happen when browsing with Chrome.
| You have been blocked Why? Something about the
| behaviour of the browser has caught our attention.
| There are various possible explanations for this: - You
| are browsing and clicking at a speed much faster than
| expected of a human being. - Something is preventing
| JavaScript from working on your computer. - There is a
| robot on the same network as you.
|
| I am used to these kind of sites calling me a robot, so I
| guess the third point is true to some extent :)
|
| P.S. I had to change the Accept-Language headers in Firefox
| to get this message in English. Otherwise I get machine-
| translated gibberish, which is ironic considering the page is
| accusing _me_ of being a machine.
| killingtime74 wrote:
| My dad alleges that it's common practice for apartment/condo
| developers to sell the first few units with an undisclosed rebate
| so that the selling price is anchored to a higher point for later
| buyers.
| illwrks wrote:
| It's true unfortunately, at least based on what I've been told,
| and read.
| datadrivenangel wrote:
| This sounds like the type of transaction that would be illegal or
| require more transparency if it was a security offering.
| aetherspawn wrote:
| Commercial realestate is ridiculous right now.
|
| I have no idea how most shops are profitable when they are paying
| $3k+ per month, either for a run down shopfront in a non-prime
| location, or for a 100m2 office.
|
| I'm going to also blame VC money on inflating the price of
| everything and making it difficult to afford to do profitable
| tech business at local scale. That's my theory anyway.
| crmd wrote:
| My corner bodega in a non-posh neighborhood in Brooklyn is
| paying $5550/month rent for a 750 square foot space. That means
| having to sell approx 45 packs of cigarettes smuggled up from
| Georgia per day just to pay rent. I don't know how they do it.
| killingtime74 wrote:
| Many small businesses do it by using family members as labor
| (or themselves) and not paying minimum wage.
| bsder wrote:
| Residential is ridiculous, too.
|
| In Austin, I'm starting to see things like "2 months free".
| They'll do _ANYTHING_ to avoid actually--you know--lowering the
| damn rent.
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(page generated 2024-01-22 23:01 UTC)