Reply to ELI5 the DC loophole that makes it more attractive to have vacant DC commercial real estate

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Reply to "ELI5 the DC loophole that makes it more attractive to have vacant DC commercial real estate"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Many commercial landlords raise the rent because they don’t want the tenant to be able to afford a new ten-year lease. They think that if the value of the property is increasing, they might be able to get a different high-paying tenant done the road [/quote]

So the landlords have pockets deep enough to be able to miss out on over a quarter million dollars a year? Interesting. So they look at it in ten year chunks? Rather than I am potentially losing millions over the next few years, they see it as I am depriving myself of potentially a few million?
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I guess that it depends on whether or not they own the property outright and how many other properties that they own and have rented.  If you own 50 properties and have 45 rented, you can probably eat that lost revenue pretty easily if you want to.  If you are signing ten year leases or plan to sell or redevelop it’s worth it to wait.  If the rent is $5k/mo and you increase rent by $5k/month (doubling your income), that’s $600k extra over a ten year lease….so what if you lose $60k in a year?  Or more? You’ll just write it off against the income on your other properties, anyway.

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