[benjaminjackman]

My understanding and it could be wrong is that they can't lower their rates, (and might actually have to increase to compensate for more vacancy) because it will affect their ability to finance the buildings if they have lower rates from whatever math is used to calculate the soundness of the loans. That could be causing the stickiness on price you are seeing (if it's not apocryphal).

[neom]

My understanding is your understanding is correct. I've also been told that's why NYC tends to be quite unique, the buildings are mostly owned so there is more leeway in finding something as you can go directly to the owner. That said, a startup I consult to is in the basement of a building in Vancouver, I talked to their landlord who owns the building free and clear for 3 generations, same deal, no reason to rent it, just let it sit till the market rebounds. Curious to see what will happen.