Quote:
Originally Posted by LouisVanDerWright
Guys it's a myth that landlords leave commercial vacant for the tax write off. In no situation are you going to save more money taking a write off than you'd make renting it out. Not by a long shot.
The reason you have big retail vacancies all over the city is that its really f-ing expensive to put a retail tenant into a space. Most retail build outs start at $50/SF and range to upwards of $200/SF. That's a lot of dough to put into a space that might only be useful for the one tenant you have. So unless there is some serious financial backing or a national class A retail tenant, most landlord's are going to keep their wallet closed until such a time as they can find someone that justifies the financial outlay.
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I'm a retail landlord and this guy knows what he's talking about. Thank you for calling out this uninformed conclusion. I roll my eyes every time I see someone say that because of tax implications, it's beneficial for landlords to leave their spaces vacant. It absolutely is not. One year of vacancy eats up lots of $/sf of rent. I'm not refusing to do deals because I'm holding out for $2, $3, $5 more per foot in rent.
You give me a tenant with a viable business plan, willing to throw in some of their own money next to mine to building out their space, willing to put up some amount of security, and willing to pay a reasonable rent, even if it's less than I'd like to get .....and I'll sign that lease.