[watersb]

> Right now, commercial rents are locked into untenable rates because the loans are contingent on those rates

Let me get this straight.

A landlord cannot lower the rent, because they took out a loan on the property which promised to the lender that the rent is a particular amount?

> which is resulting in 30%+ unused commercial space in areas like downtown SF.

The loan prevents the landlord from lowering the rent, so the landlord realizes rental income of $0 on the property.

Oh, that's just great.

[master_crab]

Yeah loan covenants lock you in like that. But banks don’t want to manage or sell big commercial properties. If it gets dicey for property owners, they’ll work out a deal with their bank.

Remember Getty:

If you owe the bank $100, that's your problem.

If you owe the bank $100 million, that's the bank's problem.