Expert breakdown of NYC's overpriced commercial vacancies.

What people said

jaaames · 2020-09 · Strong recommendation

"Meanwhile, 90 percent reported they have been trying to negotiate their leases, but their landlords wouldn’t budge." This is alarming. It may seem like just another statistic lost in a bigger article, but it's symptomatic of a ticking time bomb in NYC, and commercial real estate more broadly. Louis Rossmann had an excellent breakdown of why the landlords won't budge on the leases [VIDEO] tl;dr - the loans on these restaurants are all bundled into commercial mortgage backed securities (sound familiar?) and sold to wholesale investors, and the landlords are unable to change the terms of the lease, or the banks will revalue the underlying asset based on a multiple of the rent, and the owner will either essentially get margin called, or end up with negative equity, and default on the loan. Can someone from Wall Street please add their thoughts?

Read the original HN comment ↗

xmodem · 2020-09 · Recommendation

The problem is that what is actually going on in NY - and many other markets - doesn't remotely resemble a properly functioning market: [VIDEO]

Read the original HN comment ↗

afuchs · 2025-03 · Reference

Louis Rossmann has a video series of his rants about commercial real estate and the refusal of landlords to rent spaces to him which have been vacant for multiple years. One of his videos speculates that real estate is being used to store money and the building owners don't want to rent out anything: [LINK] Another video speculates that the owners of some buildings have made claims to banks and investors that their buildings are worth more than these buildings are actually worth. In this situation, if the buildings' owners lowered rents they would be admitting that the building is not worth as much as they claim. This could trigger contractual obligations they have with their mortgages and investors: [VIDEO]

Read the original HN comment ↗