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.
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.
Have a 401K, a 403B, or a Government Pension?
Most marketmakers tend to be Pension and Retirement Funds - they are the only ones with the actual liquidity needed to capitalize on market changes.
I sometimes have to go back and remind myself this is really happening, it's such bullshit.
Property ownership and property "development" has been, and is, propped up at every level, because the people making policy are, or know, the people owning property.
unfortunately cre incentives beung what they are, that will never happen
The current dynamic is how economies seize up.