Business and Money Tips

They say an empty (or mostly empty) mall fetches a higher value than a fully-occupied mall.  From a pure property finance perspective, a mall is often valued based on projected rental income and capitalization rates. If rents are lowered significantly, even the mall is fully occupied, the mall’s paper valuation may indeed decline. In that sense, an “emptier but higher-rent” mall can sometimes appear more valuable on paper than a fully occupied mall with weak rents. This explains why malls raised their rentals and chased away long-standing tenants but the landlords are happy.  The statement is financially intelligent but only partially wise. It correctly explains  valuation mechanics and  leverage implications and  why landlords sometimes tolerate vacancy,  But it underestimates  human psychology,  ecosystem effects,  emotional energy and  long-term vitality.  A mall is not merely valued by rent. A mall is ultimately valued by life. ...