Broadway is dead
(twitter.com)
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It probably also has something to do with New York city being in economic decline ever since the Covid retardation hit. Last I heard New York, New York wasn't a very good place to be living and a lot of businesses were closing down and real estate wasn't getting rented back out after those businesses left. If that's still the case then there's probably just less discretionary spending across the board and what's more frivolous during hard times than paying through the nose for theater tickets?
The landlords could always lower the rent, but they would rather let the properties rot vacant than expose how overvalued NYC real estate is.
It's because they have insurance for empty units. It came out in the menugate saga.
From what I understand (which is limited) they have financing against the value of the building. The value is partially determined by how much rent is charged. If they lower rentm the building gets re-evaluated at a lower number and then they don't meet the collateral terms for the loan, so they default. Or something like that, I don't know