hey everybody how's it going hope you're
having a lovely day so four years ago I
went looking for a new store because the
store that I was in was 600 square feet
and they were about 12 to 13 people
working there 12 people inside of 600
square feet means that each one of my
employees had less than one-third the
amount of space that is recommended for
free-range chickens when grazing so that
they don't Peck at each other and
believe me my employees were pecking at
each other so I decided to look in for a
new space and I was receiving such
ridiculous quotes and treatment from
everybody that I dealt with that I
decided to actually start recording it
so I created a playlist there's over 60
videos here of me showing up to
different stores there are several
different videos here where I'm showing
up to a store that claims it's 1800
square feet and when I get there it's
literally 800 something
print
and just know it's not me it's the way
it's listed yeah I guess but did you
post the ad or did they post the ad no I
do you see they don't I don't know if
the listing it said 1800 square feet the
top is 850. if I do that with my
customers they're gonna kick me in the
nuts no it's it's good that it's good
that you're doing it because that that's
what they do and I thought this was kind
of funny so I decided to make a playlist
with every single time that this
happened and a lot of people were asking
me why am I complaining about this why
am I going over New York City real
estate when I go over the fact that
there are so many stores full blocks
where nothing is rented when I was going
over the prices where you have a store
smaller than my old one that was 25 000
a month a store that's the same size as
my old one that's 75 000 a month a
building that costs over a million
dollars that literally looks like it got
bombed during World War II this is just
the type of stuff that is common in New
York City and the thing that was
bothering me is the fact that rather
than rent it out or sell it for what it
is actually worth the landlords would
rather keep it empty instead of
accepting 5K
for a paying tenant they would ask for
20K and leave it vacant for years I was
looking for a store back in 2011 and I
found one on 6th Avenue and 8th Street
and I was this close to renting it but
there were a few terms that were not
quite reasonable eight years later in
2019 when I went looking for a bigger
store again that place was still vacant
and it had the same sign on the window
and this is something that you will see
if you've been living in New York City
as long as I have you walk down the
street and there were places that have
been vacant for six years seven years
and nine years with a retail space
release sign on the window why is this a
problem well let's take a look at
Bloomberg today this says that top U.S
Regulators are flagging increasing
commercial real estate risks why does
this matter this is because commercial
real estate loans make up a large amount
of the liabilities on the books for many
major Banks top US Financial Regulators
say they're a stepping up scrutiny of
how exposed banks are to commercial real
estate as vacancy rates increase the
financial stability oversight Council
said in a statement Friday that
delinquency rates are low but empty
offices are on the rise regulate are
taking steps to emphasize risk
management and examine exposures to
commercial real estate loans at their
regulated institutions the group said
the fed and the Federal Deposit
Insurance Corp have been peppering
lenders with questions related to
interest rate risks and Commercial Real
Estate exposure Bloomberg News reported
last month and fed chairman Jerome
Powell said on Wednesday we do expect
there will be losses in commercial real
estate and banks that have
concentrations in that area will
experience bigger losses now this is a
serious problem because when you have a
landlord that is at a space like this
with a retail space for lease sign that
has not leased the space in three to
five years that means he is not making
money off of that location if he is not
making any money off of that location
that is going to limit or hinder his
ability to pay his loans in an
environment where interest rates are
going up this is going to be very very
bad if he has no income which means that
the bank may be stockholding the bag on
a building that is worthless because
nobody wants to rent it had these
landlords simply decided that they would
have rented out their space for
something that is reasonable we may not
be in the situation however since so so
many landlords at the very least in New
York City and I have documented many of
them have been completely unreasonable
with what it is they want for their
space we have situations where large
swaths of large cities with 8.4 million
people in them have complete blocks with
nobody there where every single
storefront is vacant this matters it
matters to the actual real world economy
it matters for many more reasons than
just a salty laptop repairman that is
bitching because his employees are
pecking at each other because they're
forced to work in a 600 square foot
space because everything else costs 75
000 a month this has real world
implications landlords choosing for a
decade to not rent their spaces out for
anything that is remotely reasonable has
actual consequences on the real world
economy if your money is in a bank that
has decided to give out a lot of these
commercial real estate loans to people
and institutions that buy buildings and
sit on them and never actually rent them
out that is a serious risk and this is a
risk that they should have looked at
eight years ago five years ago even four
years ago when I was doing these videos
and it was blatantly obvious that
something was off or one of the most
densely populated famous cities in the
entire world
with 8.5 million people in it
was kind of empty when you walk down a
lot of these retail streets and you
noticed everything was empty huh there's
8.5 million people here seems like
people want to live here a lot of those
people have money seems like they want
to spend money here why is this still
empty when there's no vacancies in a
strip mall in Round Rock in a place that
has like a hundred thousand people and
not as much money
Something Fishy is going on there and
that's something fishy didn't affect you
four years ago when you were laughing at
me for complaining about the commercial
real estate but as I say on this channel
there are many problems that affect
other people that we don't pay attention
to as long as they affect other people
however when there's a chance of it
affecting us then we care and the
problem is with this approach is that if
you only care about a problem once it
affects you
you are then screwed because it is too
late to do anything same thing I
mentioned with right to repair on a
regular basis nobody cares and they
laugh because that's happening to the
Apple users nobody cares and they laugh
because that's happening to the Samsung
users
what happens when your phone no longer
has a Micro SD card slot or a headphone
jack or a bootloader that you can unlock
to install an operating system of your
choice what happens when you have a
tractor and you are laughing at these
people that were complaining about Apple
in their practices and now when you fix
something in your John Deere tractor you
have to pay the deal or 125 an hour to
drive out to your farm with a two-week
wait to plug his computer in to repair
the part that you already installed in
your tractor the problem is that we
spend so much time rather than listening
to people that point out real world
problems laughing at them for having a
problem that we don't currently have so
that when that problem finally comes
around to bite Us in the ass and affect
us
uh oh too late
how much do you want to bet that
somebody watching this channel that has
never been to New York City keeps money
in a bank that owns a loan on one of
these garbage properties that I posted
here
think about it
think about it that's it for today and
as always I hope you learned something
and for the sake of us all
kind of hope to God that somebody
decides to actually rent some of these
properties because you never
know when this may wind up affecting all
of you
that's it for today and as always I hope
you learned something I'll see you all
in the next video bye now oh Mr Clinton
when did you show up here what's that
you wanted to remind them all that if
they wanted they could buy it it's not
lying it's commercial real estate mug
t-shirt or hoodie no way wow look at
that
and the funds go straight to you
for Greenies
well I don't know anybody could pass up
that as an offer
isn't he a cute cat
look at this guy
absolutely adorable
he comes up to snuggle next to me
anytime I do a video and he knows
literally the second that I turn the
lights in the camera on and I start
talking into it he runs over he could be
sleeping for two hours the second I
begin a video he makes a little meowing
noise and he runs out here to show up in
the chair
he's a 14 year old cat
he's an old boy now I got him in 2009.
but he's a good boy
what's a good Clinton