Real Estate

When examining human behavior, you can usually answer the “why?” behind most phenomena by analyzing incentives. This principle applies universally—from economics to politics, where elected officials often prioritize certain interests over broader constituent needs. There’s a reason the phrase “follow the money” has become ubiquitous. Many people skip the step of examining incentive structures, then express confusion when others act in ways that seem counterintuitive. Yet once you look at the underlying incentives, motivations typically become clear. Most of the dysfunction we see in modern capitalism can be traced to poorly designed incentive systems.

Over the past few weeks I’ve noticed an increase in commercial real estate vacancies around Manhattan, especially ground level retail. Tonight on my walk, I took some photos around Flatiron, NoMad, and Union Square. A few of these places were vacant before the pandemic began, such as the Belgian beer spot, but many are recent casualties.