r/explainlikeimfive • u/Boss_Atlas • 8h ago
Economics ELI5: Businesses closing due to 'high rent' but then the lot stays vacant for years. How does this work for anyone?
So I live in a fairly wealthy area of South Jersey, yet there are multiple stores, sometimes almost entire malls that are closing due to increased rent cost. The store closes, everyone leaves. Then the building/lot stays empty for literally years on end. This is happening all around my area. How is this profitable to the landlords who jack up prices? How are they not hurt but having zero rent coming in now for years from that location? How is it sustainable when entire chains or shopping centers are closing down? What's the plan here???