Why Not Reduce the Rent of an Empty Space, You Ask?

Empty Commercial Buildings still need full price

Are you Wondering the Same Thing About Empty Commercial Space?

If I had a nickel for every time I’ve been asked this question, I’d be rich by now. Time after time, people ask me: why won’t the landlord reduce the rent of an empty building? It would stand to reason that an empty space would be a less expensive space, but that’s usually not the case.

Some landlords won’t reduce the rent for a simple reason: they want what they want, and they’re waiting for the right deal. Others have a mortgage on the property and therefore, have the bank telling them the minimum rent they can charge. Some buildings have changed hands multiple times since 2008, and the new owner has enough cash to wait for the right deal. In other cases, the bank took the building over in a foreclosure, and they’re still holding the title.

Believe it or not, some landlords will even take offense if an offer is too low. You have to strike the right balance when putting an offer in on a property — and that’s where a good broker comes in. Good brokers understand the market, understand the comps in the area, and can help you put together an offer that makes sense, both for you and for the seller.


About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.