Yeah loan covenants lock you in like that. But banks don’t want to manage or sell big commercial properties. If it gets dicey for property owners, they’ll work out a deal with their bank.
Remember Getty:
If you owe the bank $100, that's your problem.
If you owe the bank $100 million, that's the bank's problem.
Let me get this straight.
A landlord cannot lower the rent, because they took out a loan on the property which promised to the lender that the rent is a particular amount?
> which is resulting in 30%+ unused commercial space in areas like downtown SF.
The loan prevents the landlord from lowering the rent, so the landlord realizes rental income of $0 on the property.
Oh, that's just great.