Comment by datsci_est_2015

It’s both in my locale, land and improvements. There’s a tax break for vacant commercial space, which leads to commercial RE holding companies to simply speculate on commercial RE and sit on vacant properties. They have such little incentive to find a tenant or even sell that commercial properties sit empty for years, despite plenty of prospective tenants taking tours. I’m on an HOA board in a building with commercial units and it’s shocking how little pushback it takes for us to deny a prospective tenants - the commercial RE company basically doesn’t put up a fight at all when we say “no”.