there is a problem to be solved. empty shops make shopping areas unattractive. walking through a half empty mall or shopping street is depressive.
i see this all the time in china and in developing countries in general. they build huge malls, and then they can't fill them because there are not enough businesses who can pay the rent being asked. at least there is growth and the place will fill up eventually. but until that happens the place is less attractive.
seeing the same in europe in malls or shopping streets is even worse because it feels like the economy is declining. you have to apply the broken window theory here. the more shops stay empty the less people will go there to visit the remaining shops. their revenue goes down, they can't afford the rent anymore and another shop is empty. if this becomes a trend then you risk that the shops will never come back.
it is therefore in the interest of landlords and the city to keep the streets alive and fill them with businesses that attract people.
ignoring this problem is just a sign of greed. instead of building a vibrant space they just want to extract as much money as possible.
instead of being forced to foreclose the banks should be forced to extend the loan and eat the loss. foreclosing will cause them a loss too. so the banks are not better off either way.
the article says the building is an income stream.
no, it isn't.
the building is part of a community. the needs of the community top your need to make a profit. yes, this means the community should probably contribute to make your work financially viable, and one way they can do that is by making policy that gives you more reasonable conditions to pay off your loan so that a foreclosure is not necessary.
no, i can't. the rent is to high. which means the rent is not market-rate. the free market was supposed to correct that, but it doesn't, so maybe this is not a free market after all.
if my business doesn't make enough profit then i literally can't. that's not an opinion or a choice. that's a fact of life. and if noone is willing to pay that much rent whether they could afford it or not, then the rent is not market-rate. that's not an opinion. that's how market-rate is defined. it is what the market is willing to pay.
real estate must be the worst thing to use as an argument for "it's a free market" - because its one of the types of things which every stock is it's own, truly unique monopoly. I can't "freely" produce the same commercial property, unless I already own that property.
in order to join that market you have to buy at the inflated prices on the market, since current owners refuse to sell for a loss, there's nothing you can do as an individual to make this cheaper unless you already own the land.
Location still matters, as it does for residential, proximity to employees, or customers is important.
Zoning restricts what land can do what.
There's many reasons why this isn't a "free market"
How, specifically? If they refuse to acknowledge the building is worth less than they expected, they aren't going to sell it to you at a price where you can make money either.
You’re stating the outcome - the property is worth less - without understanding how people buy/sell said property. And asking why others don’t agree?
The article outlines the methods used for the most part to the best of my knowledge, as someone who owns and deals in this space.
I think you need to lay out a better argument for why your thesis is the case when what happens in the real world mirrors what the article discusses. Not to mention people forget property can be owned without a bank/loan, nor that vacancies are expected/factored in.
There’s no actual problem here to be solved. If people feel they have better uses for a property they should put their money where their mouth is.