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The problem is many REITs don’t care. They are so large and so far removed from any one property that they would rather it sit empty for years than lower prices and have that affect the market rate and pull their portfolios average price per square foot down.

Storefronts in NYC routinely stay empty for years waiting for a large corporate client to come along, because the long-term stability and rent beat the pants off of any smaller tenant. Losing the stability and rent, I think they're okay with waiting again.

Abandoned leases then increase the incentive to demolish and replace.