Someone has to foot the bill for empty offices

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Even small drops in occupancy rates will have a big effect on rents and prices | Leaders

Office bulls rest their case on two pillars. One is to argue that recent evidence shows pandemic-induced disruptions are superficial and temporary. Offices have been spared the carnage that lockdowns have inflicted on other kinds of commercial property, such as restaurants and shops. Even as rent collections plummeted elsewhere, most corporate tenants have continued to pay on time. Debt delinquencies remain a rarity, and prices paid for floor space in global cities have held up.

Such optimism is at best deluded, at worst dishonest. It is too early to tell if offices have avoided the pain that months of social distancing have caused in other industries. Government help, lenient banks and central-bank largesse may have postponed delinquencies and distressed sales. Corporate tenants are locked into long-term leases which have yet to expire, and may not be renewed.

 

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Lol.

Yeah…. The landlords/investment companies that own them 🤷🏽‍♂️

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