zlacker

>>psim1+(OP)
One of the more worrying things to me is how this pandemic (and/or our response to it) will disproportionately affect small businesses and individuals. As Amazon hires 100k workers how many jobs are being lost by small businesses failing?

>>tlrobi+Eo
Amazon is now the only store open. This will clearly accelerate the death of retail, to the point that I'm not even sure it will survive.

We must have a rent holiday if those businesses and their workers are to survive.

>>taurat+tq
> We must have a rent holiday if those businesses and their workers are to survive.

We'll get a lot of rent forgiveness naturally. If a strip mall has some tenants who cannot make rent in this crisis, who are they going to get who can pay? The pragmatic approach is to keep your existing tenants, because their survival is your strip mall's survival.

>>Walter+mr
We might get a lot, but it likely won’t be enough.

Many land owners would already prefer to leave their buildings empty for years over even considering negotiating on rent. I doubt anything can change their minds.

>>fiblye+pt
It’s odd but really true. Does anyone have insight why this is the case?

>>social+8u
At an aggregate level it can make more sense to leave X% of units vacant than to lower prices (which could have effects on the rate you can charge with the rest of your units). I think it’s an example of our financial system not working as intended.

For example let’s say I have a 100 unit apartment building. If I maintain a 20% vacancy rate target I can charge an average of $1000/mo/unit. But to set a price at which my vacancies get filled very quickly, to hit a 5% vacancy rate, maybe I need to charge $700/mo/unit. In that case I’m making less money than before - $80k/mo vs $66.5k/mo.

>>opport+4Q
why wouldn't you just price discriminate through short-term concessions to fill the remaining 20% and increase revenue? this seems to be what most apartment buildings around me actually do.