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0 pointsesseph7mo ago0 comments

MidWest metro.

More than half of the office buildings downtown are empty, and the ones that do have something only have a business in a handful of offices on a handful of floors.

Because of that, people started moving away because of lack of nearby jobs.

As people moved away, rents increased in both commercial and residential spaces to cover losses.

Library attendance and checkouts are way down.

Public transportation use is down.

Tax revenue in the city is down, which means less support for public services.

It's fucking awful.

0 comments

warkdarrior7mo ago

Yes, your city may be in decline. Time to move on to a better location, not every place is declining.

nradov7mo ago

Landlords don't increase rents to "cover losses". That's not a real thing that happens. Rents are set at the market rate, with some variance and time lag for price discovery.

rightbyte7mo ago

In many cases rent is set to prop up the value of the house to match the loan, not to match any market rate.

I.e. rather empty to not break the silent understanding with the bank than too make money.

Remember the stock is the product not the leases.

nradov7mo ago

No, that's not how it works. You're just making things up. There's no such thing as a "silent understanding" with a bank. Either that's a covenant in the loan terms or it's not.

essephOP7mo ago

Commercial is in crisis

https://www.jimersonfirm.com/blog/2025/02/the-approaching-co...

I spent 3 years renting a commercial property that subsidized the rest of the property locations. As soon as my business left, the building and rest of the tenants were gone within 3 months.

It's now vacant, and has been for 2 years.

j / k navigate · click thread line to collapse

0 pointsesseph7mo ago0 comments

MidWest metro.

More than half of the office buildings downtown are empty, and the ones that do have something only have a business in a handful of offices on a handful of floors.

Because of that, people started moving away because of lack of nearby jobs.

As people moved away, rents increased in both commercial and residential spaces to cover losses.

Library attendance and checkouts are way down.

Public transportation use is down.

Tax revenue in the city is down, which means less support for public services.

It's fucking awful.

0 comments

warkdarrior7mo ago

Yes, your city may be in decline. Time to move on to a better location, not every place is declining.

nradov7mo ago

Landlords don't increase rents to "cover losses". That's not a real thing that happens. Rents are set at the market rate, with some variance and time lag for price discovery.

rightbyte7mo ago

In many cases rent is set to prop up the value of the house to match the loan, not to match any market rate.

I.e. rather empty to not break the silent understanding with the bank than too make money.

Remember the stock is the product not the leases.

nradov7mo ago

No, that's not how it works. You're just making things up. There's no such thing as a "silent understanding" with a bank. Either that's a covenant in the loan terms or it's not.

essephOP7mo ago

Commercial is in crisis

https://www.jimersonfirm.com/blog/2025/02/the-approaching-co...

I spent 3 years renting a commercial property that subsidized the rest of the property locations. As soon as my business left, the building and rest of the tenants were gone within 3 months.

It's now vacant, and has been for 2 years.

j / k navigate · click thread line to collapse