StimuUS

I have been reading many reports in respect to the state of the US economy and also the fragile situation all over the world, and I must say it makes for very depressing reading. I only have to walk a couple of blocks around my neighborhood here in Chelsea to be made well aware of how it has a flow on effect to local business.


Local retail stores are having endless sales to encourage shoppers although it really doesn't look like it is working very well. It seems every corner you turn there is a "sign of the times" – recent reports have the current commercial vacancy rate hoovering around 14%, this of course in my view is a very conservative estimate of the real situation.

The other night I called my local Indian restaurant for a delivery and there was no answer, the next day I found the reason why, the building was vacant due to lease increase. Talk about kicking them while they are down, it seems no matter the economical climate or vacancy rate stats, rather than supporting a good tenant some would rather have the space vacant until the upturn.

This sort of behavior is not new to the mindset of developers and wealthy landlords, in the past it was called "warehousing". Empty buildings stood vacant for years while their owners waited for the market to improve, rather than reducing the rents. One wonders how deep their pockets are to keep this kind of practice going. Maybe Madoff left some with a few extra dollars to get through the hard times after all.