> If someone is paying for rent in a building, then the value does not lower just because nobody is actually using the space.
If company cannot fill the office, it will be looking at downsizing and breaking the lease. If there are many companies like this, then landlord may not find a new tenant at existing rate and they'll either have to lower the rate or sit with empty property. If they have mortgage on it, it is a tough cookie to swallow.
It's similar story for companies who own the buildings. It becomes an asset that is losing value.
If company cannot fill the office, it will be looking at downsizing and breaking the lease. If there are many companies like this, then landlord may not find a new tenant at existing rate and they'll either have to lower the rate or sit with empty property. If they have mortgage on it, it is a tough cookie to swallow.
It's similar story for companies who own the buildings. It becomes an asset that is losing value.