[evilduck]

Space may be limited but it's not utilized. In my local metro's business district around 60% of storefronts are sitting vacant and yet rent for these spaces is still astronomical. And it's been that way since 2020. The push for a return to the office is a clear cash grab.

[latchkey]

That's because we are in a game of chicken right now.

[lotsofpulp]

I think it is because property (specifically land value) taxes are far too low.

The under taxation of land results in land owners squatting on it without doing anything that society benefits from.

[lamontcg]

It is also because loans are still locked in to ZIRP-era rates. That keeps the cost of capital low and businesses that own those properties have a lot of room for them to be wildly unprofitable. It will take awhile for those loans to roll over to higher rates.