This isn’t applicable everywhere, but it’s also not ‘Not applicable’. This article is moreso on a potential commentary of American Corporate Finance and the state of American Economy. Alright, so get this.
A bunch of rich people got burned by Mortgages in 08′, and did the smart thing and moved to commercial mortgages, yea, real smart. Won’t happen again. Totally.
Introduce, the Commercial Land Lord
If you thought Land Lords were shitty, well Commercial land lords are also shitty, but in a different way.
The Commercial land lord is a type of being that typically has good business acumen and is appreciably nice and kind towards potential clients seeking for a long term relationship. That of course, isn’t always the case as some of them are straight assholes and write people off left and right. The point of the land lord is to fill vacancies and occupy them to produce a profit. Commercial land lords do that but for businesses and companies.
Think, Strip Malls or office buildings for lease. Those vacant plots of land zoned for commercial use.
So they own the land, maybe even the building, and maintain it all for a monthly price as it’s leased to some other company or business to do their business needs with.
At the end of the day, the enemy of Commercial Land Lords, Land Lords, Renters, and average people are probably taxes and entropy and utility bills. Because why the fuck are you paying for property taxes if things like utilities aren’t included? Taxes and extra bills just trickle down, from Land Lords to renters, and everyone loses out on money.
And this profession is fairly straight forward as long as they have a steady supply of properties occupied with viable businesses and paying rent.
But due to recent events,
Because of the Clown Virus lock downs and Remote Work and rise of Anti-work sentiments. If you didn’t seppuku yourself, you probably realized that the system and society was a bit fucky.
And now many people are looking for remote or hybrid work jobs. Hell, some even pick up several remote positions to effectively work many things at once and collect several paychecks.
Instead of spending it on Material-Girl Coffee or eating out at a place that is basically microwaving plastic packaged soup made bulk in a factory three states away for the unreasonable price of thirteen+ dollars- A lot of people are saving and keeping their money and they’re happier too.
Especially if you have kids, or pets, or old family members. Now you can do work at home, from home, save money, eat in, and still spend time with your loved ones without paying for child-care, pet sitters, or nursing home fees.
So obviously, people with responsibilities are spending more time home and saving more money. A win-win for them, but not for our poor troubled Commercial Land Lords.
With less people going into offices near downtown traffic riddled areas, that means less people are going to have their lunch at convenient businesses near their work place. Less people are going to frequent restaurants and bars on their way to and from work. Less people drop off their shit at the cleaners or spend money on gas and other shit for travel purposes.
A lot of commercial businesses are not making money. Especially corporations.
Especially with more information on Union busting efforts, or people revealing how they make their food in the back kitchen on tiktok. A bunch of small reasons are invading the subconscious of the collective to outright just not get fast food or shit food or any dish sponsored by large corpo.
This of course, isn’t everyone. But it’s also not no-one. And those missing customers add up when the companies tally their profits on the bottom line.
Which means, business is hurting
Many places are turning into ghost towns, and the prices do not reflect the value. People too Sunken in the costs to want to sell at a loss. The Commercial Land Lords and Greedy Business Magnates are diamond handing their investments, because they don’t want to lose out. They just want things to return back to normal of them profiting from doing minimal work.
Their business predicated on businesses functioning pre-remote work era.
And the majority of Corporations are also working in hand with these larger Commercial Land Lords. (That’s because they game the system and hook up their friends. So a Commercial land lord will lease a property to a corporations and the execs of the corporation will get a kickback for signing on that leased land. It’s a conflict of interest, but to the one’s getting a kickback, they’ll think it’s all -compound- interest-ing.)
So now Corporations are also angry, and thus we have what most people describe as ‘class warfare’ with Corporate Propaganda ushering shitty headlines like ‘Nobody wants to work’ or ‘think again about remote work’, with corporations offering job openings that they don’t intend to hire, and for a push for government to subsidized intentionally failing businesses because ‘nobody wants to work’.
Yea, if your business is shitty and fails because you don’t have workers, then your business should fail like literally every other business. I know, I’m a genius, it’s business 101. For whatever reason, when large corporations complain, it’s the people’s fault that companies are failing. But when a small company is misran to the ground, it’s just a regular tuesday.
So, this Commercial Real Estate Market
CMBS, or Commercial Mortgage Backed Securities are the gamified golden nugget for REITs of the Commercial World. Commercial land lords invest in portfolios and chop and dice those portfolios to be sold as a Triple A ‘Investment opportunity’ to others.
It’s just, if their portfolio starts to do shit, then they either have to sell a shit product, invent some creative accounting, or fucking go under. And they typically have too much neurotic narcissism to go under. It’s a by-product of greed, ask me how I know.
CMBS bag holders are doing everything in their power to hide price discovery of commercial real estate.-Online comment that inspired this post
you can see this clearly in new york’s commercial ghost towns, commercial real estate rents are insanely high despite nobody agreeing to pay them, because as soon as the real rent price is discovered, the entire CMBS house of cards falls over onto a domino line of over-leveraged finance that ends up onto the first piece of the biggest historical shitstorm rube goldberg machine of humanity’s destiny
So the Commercial Land Lords that are crying are hurting and business isn’t doing too gewd- and if things don’t turn around for them, then they’ll have to sell their shit for way less under the pressure of their own payments and bills. They’ll be hemorrhaging cash money unless things turn around.
Corporations are working with Corporate media to attack the people and job markets while asking for handouts and subsidies from the government.
If you’re politically left or right, you should be against this. If you’re left, you should be against Corporate media and propaganda, and ‘work ethic’ and ‘slavery’. And if you’re right, you should be against Handing out free money and subsidies to rich people and corporations for intentionally doing shitty. Let the businesses fail.
Maybe they should have stopped buying that Avocado Toast and cancel their Netflix? A day in the life of a twitter user, eh?
And all of this is happening in meta analysis while Commercial Land Lords are trying to make their investment viable and diamond handing their portfolio of declining valuation detached from their advertised price.
So which is gonna pop first? Commercial Real Estate? Regular Real Estate? Two nicely inflated bubbles.
I wouldn’t hold your breath for either bubble to pop. Just situate yourself in preparation. Preparation for what? Whatever happens man. There are, No Safe Bets afterall.
*Not Valid Financial, Legal, Life, or Any Advice
Do you think that the shitty corporate media articles about anti-remote work are made by journalists remote working?
I’d like to think so.
The chances are pretty high that some nerd in a remote office is talking shit about remote work as they themselves remote work.
If Karma ever calls, and you see these people talk about their virtue signaling, make sure you lend a helping hand.