Louis Rossmann goes on a rant about office &amp; retail business space. What are your thoughts on this?
[https://youtu.be/\_XzsAPj55D0](https://youtu.be/_XzsAPj55D0)

He mentions paying $13,000/month for a retail shop space he's locked into a 10 year lease. So what happens when these 10 year leases, that were signed before covid end in 2030.
[{"id": "hzc4cs7", "text": "In 10 years the lease rates will likely be way lower than market, especially with all this inflation. Short term painbfir long term gain", "replies": [], "depth": 1}, {"id": "hzc5fud", "text": "Not a real estate guy, but I agree with Rossmann's observations. Not sure how an exodus of workers merits higher rent. I think hybrid WFH will be the norm, and I don't think there will be an emigration inflow - not sure how rents can fundamentally keep rising.", "replies": [{"id": "hzc84vk", "text": "Because employers are now looking to be more flexible with their space and give workers more room. Thus they need either the same or more space", "replies": [{"id": "hzc9e6v", "text": "Personally (my firm) is seeing the opposite. We lease 2 spaces, are consolidating into 1 space with the idea that not everyone will be in the office. I'm sure the initial covid dip, the behemoths bought some extra space to take advantage of the initial price dip but I think more and more firms are getting comfortable with the idea of shared working spaces and rotation.\n\nMy experience is totally anecdotal and I don't have hard data on lease data but if you do that would be an interesting dataset. New leases signed ex fortune 500.", "replies": [{"id": "hzktjhq", "text": "Office net absorption is probably going to end negative for Q1.  Some people kind of thought the worst was over when Q3 and Q4 of 2020 came back positive, but I think that anecdote is going to be somewhat indicative.    \n\n\nIt's not going to be universal, plenty of firms will keep right on trucking, leasing office space and asking everyone to be in office, but enough are going to change their formats that the trajectory of office will change.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hze09cd", "text": "This is why you don't sign ten year terms.  The entire idea of ten year terms (yes, I will offend brokers) is from brokers who want to get paid on longer terms.  Options are the exact same with more benefits to both Landlord and Tenant.\n\nI just finalized a lease with a national Tenant for a five year term with two five year options.  Total of 15 years.  The broker is CBRE and pushed for an initial term of ten years.  There is zero - zero - difference to the Tenant if it's a 10/5 or 5/5/5.  As long as the Tenant is not in default of the lease they execute their option(s) and continue tenancy.\n\nShorter terms and more options give both Tenant and Landlord flexibility.", "replies": [{"id": "hzf2ri4", "text": "Not knowing what the rent increases are.. options are almost exclusively in the tenants favor. Landlords would always prefer the ten year term vs. 5 with options and that is reflected in the cap rates being lower for properties with more term.\n\nEdit: want to add that I\u2019m on the principal side and also have a strong disdain for brokers lol", "replies": [], "depth": 2}], "depth": 1}]