Extreme Rent Increases Are Killing US Businesses

[Concerned American]

It was$1.89,1/20/21, here in Tampa, FL. Rents were $600-$700 all over the place. Biden got in. KABOOM.

what was the price of gas in Tampa on 7/20/21---kaboom

 

[westwall]

You not buying a new mandolin pick put Sam Ash out of business?

Him, and HUNDREDS of others. A friend owns a music store down in Reno. Her business is down about 80%. That's instrument purchases, supplies, and lessons. Across the board she is getting hammered.

Fortunately she owns her building so I think she has a chance to survive.

 

[Concerned American]

They are needed in some businesses >>

• Furniture - buyers need to sit on couches, chairs, mattresses to feel the comfort level.
• Music instruments - buyers need to feel them, play them, and hear them.
• Sporting goods - buyers need to hold fishing rods, tennis rackets, baseball bats, fielders gloves, etc and feel them
• Beauty Salons - gotta be there
• Home electronics - buyers need to see TV picture, hear sound, hold remote,
• Music lessons - online just isn't as good
• Shoes & Clothing - buyers need to try them on
• Cars - gotta sit in them, road test them
• etc

All these (plus online sales too) are losing sales when rents skyrocket

I sympathize with you, we are dinosaurs. Brick and mortar are yesterday's news and the younger generations are buying beds mail order online. Cars? LOL, they are buying them used online with trade-ins. Settle in, we are just along for the ride.

 

[Concerned American]

what was the price of gas in Tampa on 7/20/21---kaboom

KissMy I don't know what your disagreement is, during the time protectionist references, gas prices increased in almost identical percentages. Florida Regular Conventional Retail Gasoline Prices (Dollars per Gallon)

 

[protectionist]

You have less money to spend on non essential luxury items. Musical instruments are luxury items.

MUCH less to spend.

 

[protectionist]

I sympathize with you, we are dinosaurs. Brick and mortar are yesterday's news and the younger generations are buying beds mail order online. Cars? LOL, they are buying them used online with trade-ins. Settle in, we are just along for the ride.

I was counted in among those who say the younger generations are mindless robots, a long time ago. They often seem to think anything new is better than the old stuff. Not always true.

 

[protectionist]

Him, and HUNDREDS of others. A friend owns a music store down in Reno. Her business is down about 80%. That's instrument purchases, supplies, and lessons. Across the board she is getting hammered.

Fortunately she owns her building so I think she has a chance to survive.

My point is that the DISPOSABLE INCOME in her community that she depends upon has shrunk so bad, that her customers no longer have hundreds of dollars to spend for those instruments. Those hundred$$$ hve been diverted away, and are now going to pay their super increased housing rents.

Owning a building is helpful, but it doesnt make up for disappearing customers/sales.

 

[Harpy Eagle]

Of course Trump ordered an eviction moratorium in 2020, at the height of the pandemic. What President wouldn't have done that? But was it really necessary for Biden to continue the moratorium well after the pandemic was over, even trying to continue it after the Supreme Court struck it down?

You seem to be stuck in some kind of mindset where you've lost your ability to discern the difference between the left and the right. They are not the same.

Yes, you are so good at discerning...Trump does it, it is good. Biden does it, it is bad.

The eviction/foreclosure moratorium was a massive overreach by the Govt that had not constitutional right to put into place.

But, since it was Trump you are cool with the Govt taking that much control....and I bet you also whined like a 3 year old about being made to wear a mask.

This is why our country is spinning down the shitter, each side gives their side a free pass on everything they do.

 

[JohnDB]

Commercial property tells the tale of the tape with vacancy rates and price per square foot.

Peaking Loan Maturities Push Office Sale Prices Down

What is the office real estate outlook for the largest office markets in the U.S. in August? Read the highlights and deep dives in our full monthly U.S. office markets report.

www.commercialedge.com

Key takeaway...
Since the start of 2023, growth in the Financial and Professional and Business Services sectors has been stagnant, though both have added some workers. In contrast, the Information sector has faced year-over-year declines for 12 consecutive months. As of May 2024, the sector had 36,000 fewer workers compared to a year earlier for a decrease of 1.2%.

 

[Harpy Eagle]

Commercial property tells the tale of the tape with vacancy rates and price per square foot.

Peaking Loan Maturities Push Office Sale Prices Down

What is the office real estate outlook for the largest office markets in the U.S. in August? Read the highlights and deep dives in our full monthly U.S. office markets report.

www.commercialedge.com

Key takeaway...
Since the start of 2023, growth in the Financial and Professional and Business Services sectors has been stagnant, though both have added some workers. In contrast, the Information sector has faced year-over-year declines for 12 consecutive months. As of May 2024, the sector had 36,000 fewer workers compared to a year earlier for a decrease of 1.2%.

This was becoming an issue before COVID, and COVID proved to many companies they did not need to waste millions a year on renting office space.

 

[JohnDB]

This was becoming an issue before COVID, and COVID proved to many companies they did not need to waste millions a year on renting office space.

Especially when they never had any intention of filling the space with workers to begin with.

Some companies like McDonald's, UBS, and etc just build out office space and rented it but have essentially a skeleton crew in the office. Thus was going on way before the pandemic and quarantines. The office space they used was part of a metric utilized by stock traders....so they would spend $500k/yr on office space to return $5mil of stock price. Didn't matter that they had no office workers or that they only needed 20% of what they were renting....

The ivory tower is indeed empty and full of cobwebs.

 

[Harpy Eagle]

Especially when they never had any intention of filling the space with workers to begin with.

Some companies like McDonald's, UBS, and etc just build out office space and rented it but have essentially a skeleton crew in the office. Thus was going on way before the pandemic and quarantines. The office space they used was part of a metric utilized by stock traders....so they would spend $500k/yr on office space to return $5mil of stock price. Didn't matter that they had no office workers or that they only needed 20% of what they were renting....

The ivory tower is indeed empty and full of cobwebs.

Thanks, I was not aware that was going on.

 

[Harpy Eagle]

They are needed in some businesses >>

• Furniture - buyers need to sit on couches, chairs, mattresses to feel the comfort level.
• Music instruments - buyers need to feel them, play them, and hear them.
• Sporting goods - buyers need to hold fishing rods, tennis rackets, baseball bats, fielders gloves, etc and feel them
• Beauty Salons - gotta be there
• Home electronics - buyers need to see TV picture, hear sound, hold remote,
• Music lessons - online just isn't as good
• Shoes & Clothing - buyers need to try them on
• Cars - gotta sit in them, road test them
• etc

All these (plus online sales too) are losing sales when rents skyrocket

We bought our last two mattress on line. They came with a 100 day full return policy if we did not like them.
Once a person is fitted and knows the measurements, on line golf club buying is a big thing these days.
All TVs are about the same, got our last 4 or 5 on line.
My daughter buys all her clothing from Amazon, if it does not fit she sends it back.
Even car sales on line are blowing up. Removes all the stupid sales tactics that car dealerships use

 

[JohnDB]

Thanks, I was not aware that was going on.

Been going on for decades.
Mostly because people don't look anywhere but their phone or computer....they don't feel the need to get out and look when they can just use their computer to see.

Conversely....insurance companies actually use their office space and often can use more than what they have. Their offices are always full of people. If you had a lunch based service business....build by insurance offices. You will make the volume of sales every time. (So long as your product is decent)

 

[protectionist]

We bought our last two mattress on line. They came with a 100 day full return policy if we did not like them.
Once a person is fitted and knows the measurements, on line golf club buying is a big thing these days.
All TVs are about the same, got our last 4 or 5 on line.
My daughter buys all her clothing from Amazon, if it does not fit she sends it back.
Even car sales on line are blowing up. Removes all the stupid sales tactics that car dealerships use

I will never buy a chair, couch or musical instrument online. And why go through the trouble of sending things back, when you can just go to the store and get the right item in the first place ?

Imagine buying a violin online ? No, I couldn't even imagine that. You have to feel it, hear it, play it, and see it. Reading through reviews of things bought on line, there are score of reports that say the item doesn't look like the one pictured in the ad.

The violin hanging on my wall looks exactly like the one I chose. That's because it IS the one I chose, in the store. You dont want to get stuck with a violin that isn't pleasing to your eyes. When you play it, it is just 5 inches from your eyes.

 

[protectionist]

Yes, you are so good at discerning...Trump does it, it is good. Biden does it, it is bad.

The eviction/foreclosure moratorium was a massive overreach by the Govt that had not constitutional right to put into place.

But, since it was Trump you are cool with the Govt taking that much control....and I bet you also whined like a 3 year old about being made to wear a mask.

This is why our country is spinning down the shitter, each side gives their side a free pass on everything they do.

 

[protectionist]

Commercial property tells the tale of the tape with vacancy rates and price per square foot.

Peaking Loan Maturities Push Office Sale Prices Down

What is the office real estate outlook for the largest office markets in the U.S. in August? Read the highlights and deep dives in our full monthly U.S. office markets report.

www.commercialedge.com

Key takeaway...
Since the start of 2023, growth in the Financial and Professional and Business Services sectors has been stagnant, though both have added some workers. In contrast, the Information sector has faced year-over-year declines for 12 consecutive months. As of May 2024, the sector had 36,000 fewer workers compared to a year earlier for a decrease of 1.2%.

And they add to the thousands of businesses that are suffering declines (if not closures) during the time of Biden's record inflations, the worst of which is rental housing (involving the largest increases).

People arent as able anymore to buy Financial and Professional and Business Services as they were in previous years.Same as being less able to buy other stuff.

 

[initforme]

Some when rents go up 100-200%, and we have $4-500 less money to spend on everything, we should just shut up ad smile about it, huh ? r you a landlord too ?

And if you're business owner and the disposable income of your community just went down by millions$$$ per year, you shoud be happy that ONE type of business owner is getting rich, while hundreds of others are going out of business, or suffering significantly reduced sales, is that what you think ? Biden supporter ? Or maybe you're talking from some kind of vested interest ?

I don't know what is floating your boat, but since the mast massive inflation on rental housing has occured, businesses are under the most severe pressure we have ever endured. That is a fact, and worth talking about.

The business can shed employees. Problem solved. One doesn't need additional employees to grow a business.

 

[protectionist]

The business can shed employees. Problem solved. One doesn't need additional employees to grow a business.

Shedding employees doesnt solve the problem of sales reduction, caused by extreme inflation. In fact, getting rid of employees will make the problem worse > even more reduction of sales.

 

[Harpy Eagle]

The business can shed employees. Problem solved. One doesn't need additional employees to grow a business.

Depends upon the business. A mechanic shop cannot grow a business without mechanics