Discussion in 'Area Restaurants, Dining and Food' started by sds, Jun 2, 2011.
Very valid observations, I would say! :2thumbsup:
Couldn't it be that landlords are themselves underwater on their properties and need to charge exorbitant rents just to cover their mortgages?
I don't know for sure, and I'm purely speculating, but I can just imagine that developers built these shopping centers and sold them to businesses for a gazillion dollars under the claims that Ashburn is a goldmine for retail space and they'll never have to worry about the investment.
To me, it seems like it trickle down effect of high costs. I really have no idea who's at the top though; is it developers? Is it landlords?
Its possible but I doubt it because no matter what, their mortgage payments, if they got fixed rate, would be the same every month until its paid off. But if its variable, Im guessing that for new tenants, they would pass along the costs to them,. Im not sure and whats more, landlords probably aren't going to reveal whether they are underwater or not. I highly doubt that they will tell anyone what their mortgage payments are each month for the entire shopping center development. Whether they are breaking even, making a profit, or losing money is probably what we'll never know!
But in this example.. the developer and the landlord are the same company At least same parent company. VM developed southernwalk, the shopping center is developed by VM's commercial arm.
So if their costs are too high, they can only point at themselves. If you built something assuming revenue models that were not realistic - they also need to look in the mirror.
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