Addresses a question I've wondered about: why do some retail spaces stay vacant for so long? I understand that there can be a gain from waiting for a "good" tenant, but some spaces stay vacant for a seemingly long time. Why not lower the rent?
This piece claims it is because landlords are effectively pressured against it by lenders, primarily banks. But that just pushes the question one step further back: why don't the banks adjust? The piece then briefly proposes regulation by the Fed is discouraging the banks from changing. That would be consistent with Newmark's Third Law: if something screwy in the market is going on, check to see if government is involved.