Have you ever wondered why empty storefronts in big cities remain empty for so long? New and still-in-progress paper This book by Daniel Stackman and Erica Moszkowski provides valuable information about one piece of the puzzle. Here is the summary:
In Manhattan, America's largest and most expensive urban retail market, we document an increase in prime retail storefront vacancies, a phenomenon we call the high rent disease. We identified little-known features of contracts between retail landlords and their bankers that create vacancies in the downstream market for retail space. Specifically, broad terms in commercial mortgage agreements impose rent floors on new leases landlords enter into with tenants, making the pricing mechanism dysfunctional during periods of low demand for retail space. I am. Quasi-experimental estimates suggest that binding rent floors imposed by mortgage covenants significantly reduce the probability of occupancy, and counterfactual exercises suggest that binding rent floors imposed by mortgage covenants significantly reduce the probability of occupancy; It has been shown that the vacancy rate may have increased by as much as 14% over the period.
There are also earlier ones Mr. There are posts regarding this question, but I don't know the right keywords to find them…