Readit NewsIf the space is vacant, and the last known rent was $X, the assumption is that borrower is bad at advertising space, but a successor would be able to get it rented again at that rate.
OTOH, if the space is rented at 0.7 times $X, the tenants may have a long term lease that fixes that price for a significant time and even a savvy successor would have a hard time raising rents, so the valuation needs to be calculated based on current rent.
Wouldn't banks want to accurately assess these valuations so these types of "bad loans in actuality, good loans on paper" don't become a large portion of their balance sheet?
Maybe not all at once, but over time it seems like banks would want more accuracy on this.
I have a side business of a small e-commerce shop. I would consider having physical space just for the sake of luxury, but now I would rather spend that monthly rent on marketing online rather than paying for physical space.
IMHO, that's what is happening. Bank problems or anything else are secondary; if it were profitable to be at the physical location for the businesses, other factors would vanish.
Apartment complexes could also be 50% vacant and still "worth" their original value if the asking rents remain high.
Office buildings that got cleared out after covid, same thing.
Brick and mortar retail are the same.
The article is more of a criticism of how asset values are calculated and loans are managed to avoid foreclosure. Which results in financially valid buildings/loans that are underutilized because the other option is creating economic equilibrium at the cost of lenders and debt holders.
Even still, are people buying an SUV or minivan for the driving experience?
If she needs a car, it is what it is. But her situation specifically is one where a minivan would solve her problems. She says the SUV gets cramped with 3 kids and their sports equipment. This is exactly the problem minivans solved. I think the problem being faced here is more about societal trends and cars as status symbols and expressions of self. SUVs are cool and trendy, minivans are lame and boring.
Another person said they need a Land Rover Defender. Also, minivan solves their specific problems of shuttling people and needing to fit a door on occasion.
Minivans aren't small by any means, but they are much more functional and useable than what most people are buying.
My last car will probably be my current car from 2013, which I have replaced the engine in, and plan on replacing the transmission in when that goes, as well as other parts as needed. Rust is basically what is going to kill it and I can stave that off for a long time.
When that day comes, it won't really matter. I live near a quarter mile from a train station, 200 feet from a bike trail that connects to my city's bike network, and 50 feet from a bus stop. No need for a car really ever. Rentals exist for car needs every few months, but there are usually other options.
The key for me was to not be dependent on any singular mode of transportation and to have redundancy so that if any single option isn't working, I have at least one other option to go places.
Here's what I imagine it's like working on the Copilot team:
> Mgmt: "We need this feature, and we need in 2 weeks."
> Devs: "That feature is not technically possible."
> Mgmt: "Well, figure out a way to make it possible. That's _your_ problem."I might consider negotiating for lower pay to continue working, or try to work towards some sort of deal like that. But I'm not sure if that would actually be better than a potential severance and unemployment considering the a firing could still be on the table and would only make the severance and unemployment lower.
This is precisely why I stopped using my Garmin. I did really like it and used it when I was running daily. But when I went on long hikes (8+ miles), I often ran out of battery. The watch charged very fast, but I got sick of having to remember to charge it daily if I wanted to track an activity.
I now wear my Fossil ('dumb'?) watch daily. After maybe five years, I've replaced the battery once. It's so much nicer than a daily recharge.
I think most models can easily do 5+ hours of GPS on a single charge.