Our office lease ends in six months and we’re in the process of looking at lease options. We have an amazing office now (MTV’s old office) and would like to extend the lease for one year. The building won’t do it — they won’t do anything less than a two year extension. They claim that they are worried that with all the new buildings coming on the market they’ll be left with more empty space and want to solidify longer term deals now. Wait, we’re offering to pay hundreds of thousands of dollars to them for a space that is going to sit empty indefinitely and they are saying no. It doesn’t make sense.
My take is that the building management companies are so far removed from the building ownership companies that are so far removed from the pension funds that own it that there is a moral hazard of sorts. Economic wastefulness ceases to amaze me.