Broadway is dead
(twitter.com)
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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