Why are lease terms so long? Why wouldn’t some consider leasing for a couple of months?
Why are commercial real estate leases so long? Is there any reason for this?

Is it too risky to lease for a short amount of time... say 1-2 months only?
[{"id": "g6pi3qs", "text": "From the ownership perspective, it\u2019s not a great business model. I could in theory lease space to you for 1 month, but there are costs associated with that. It takes time and money to get a new tenant, so I would have to spend money after you leave to market the space and attract a new tenant (leasing costs, plus the lost money from space being vacant). Then there are of course costs associated with me getting the space ready for the new tenant (maybe paint and carpet if damaged, signage, new wiring to meet their needs, etc). Some tenants will want to customize the space more, so that means more tenant improvement costs each time someone new moves in. As an owner, you take on more risk when you start signing shorter leases, because you\u2019ve got to spend more to keep the spaces leased and you\u2019ve got to account for the time the space is sitting there vacant. Co-working spaces have tried to solve the issue by offering short term leases, but at a higher cost. They charge you significantly higher rent when you make an apples to apples comparison to make up for it.", "replies": [], "depth": 1}, {"id": "g6pjfz5", "text": "Listings fees and risk.  No income while empty is not profitable.", "replies": [], "depth": 1}, {"id": "g6pl7k2", "text": "Owners need term to amortize TI and LC.  More importantly, commercial real estate is an investment vehicle.  Short term leases create ZERO value for a building, and are generally discounted as nothing when underwritten.  Putting a cap rate on nothing is nothing.  IF I did do short term deals, I'd have to charge such a premium for the space that it wouldn't make any sense.  Which is why Regus just filed Chapter 11.", "replies": [{"id": "g6qwtzf", "text": "Remember when WeWork was valued at $7.9B?  Bahahahhaha", "replies": [{"id": "g6ti7re", "text": "I can't wait until Tesla faces the same fate.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g6pmrt9", "text": "In Hawaii where virtually all commercial real estate, but especially retail has been devastated by the pandemic (literally boarded up and either failing or failed) I am seeing a few adventurous landlords experiment with pop-ups, (short term occupancies for special retail events) but not many and no word yet on whether or not successful.\n\nHawaii is supposed to reopen to limited trans Pacific travel on Oct. 15, so if that works out we may see some rebound on the commercial side. (My bet is that it will not work out and the state will close down again in December. Hawaii has not been successful in containing the virus and has extremely limited  medical resources. It has also not been successful in limiting the economic damage and supporting the business community through difficult times. Epic fails on both counts.)\n\nBack to commercial real estate  -Under normal circumstances (which I'm not expecting to return for at least another two to three years) most commercial landlords want a lease that is at least three years long with annual bumps.  But those expectations may soon be another victim of covid.", "replies": [], "depth": 1}, {"id": "g6pmx8o", "text": "Aside from all the other factors mentioned here, you would completely wash away any identity that your space has.  Consumers like a reliable product too, they want to know they are going out to consume and it\u2019s gonna happen the way they expect it too, rolling the dice is for Sunday\u2019s", "replies": [], "depth": 1}, {"id": "g6pnr00", "text": "A lot of it is just how it\u2019s done, and therefore how things are setup to manage the risk etc. \n\nTherin lies an opportunity though.\nSubrent space by the hour or day by using a platform like liquidspace.\n\nAssuming you have an agreement with the commercial landlord for such. \n\nFor people who ask \u201cwell why wouldn\u2019t the landlord just do that instead?\u201d  My responses include..\n\nThey don\u2019t have the time.\nIt\u2019s not their business model and they want to stick with what they know. (See above re 1 year lease)", "replies": [], "depth": 1}, {"id": "g6q35d7", "text": "Stable, quality long term leases drive up the value of the building, and makes financing options better. No lender wants to finance a building that has unstable income from short term leases. When going to sell, the quality of the leases affects the value of the building.", "replies": [], "depth": 1}, {"id": "g6q9zev", "text": "Plenty of short term commercial  leases.  Halloween store and Christmas tree lots coming soon!", "replies": [], "depth": 1}]