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6 Responses to 'Why are the leases in the shopping strips so high, yet half of them seem to be empty all the time?'

1. MarshaMarsha - October 2nd, 2009 at 12:15 pm

   He can’t..negotiate.

2. swthrt474 - October 4th, 2009 at 3:38 pm

   that is why they are emtpy.there to expensive no one can afford it.i bet the taxes are sky high too

3. Robert D - October 5th, 2009 at 11:58 am

   I was told by a wealthy shopping strip owner that the tax right-off is very good.If the average unit goes for $7.00 a sq. ft. then the ones that remain empty get that same right off.If he were to drop the rent to $5.00 then the right off would be at $5.00.So, most of the time ,the owners do well if just a few units stay empty.Up until, too many people move out.I owned an art gallery for years.

4. sarell - October 8th, 2009 at 9:36 am

   they are just thinking of the money not the money lost. You think good shame they don’t think like you.

5. aint_no_stoppin_us - October 10th, 2009 at 10:18 pm

   The rent is so high on those that are being rented that it covers operating expenses.

6. Lewis Y - October 12th, 2009 at 8:34 pm

   Because if the owner lowers the rate for a new customer, he would have to lower the existing rates for established customers. Also, it is possible that the property manager has guaranteed a per foot cost, and cannot lower his rates.

   You do have some latitude for creative negotiation, especially if you require little in the way of modifications, but insurance and utilities are definitely a function in the cost of rents.

   Utility costs for commercial buildings are calculated differently from residential costs. Insurance is also a huge factor.

   If you have solid financials, there may be some negotiating strength available.

   Good luck, you’ve gotten some uninformed answers so far.

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