I love it. Commercial real-estate. There is a piece sitting unused across from my home, and it has been doing so for years.
I think it was empty when we moved in.
It is run down and honestly, probably sinks the value of our home. Neighborhood children play there sometimes.
Most commercial leases are for 10 or 20 years so sometimes it's worth a pretty long wait to get your asking price.
You also don't want to have high risk businesses move in because they got lured with cheap rent. If your tenant goes bankrupt quickly, you might be out time and money. Those are pretty much the only economic reasons, assuming you don't end up making the rent so low that you can't even cover your own costs (repairs, legal fees, paying employees, and property taxes).
Another reason is that often the owner of the property has to pay to have the property outfitted for the new tenant. If the owner doesn't have spare money to pay for a new outfitting they may struggle to get a tenant.
Because of this the landlord may not want the type of businesses that need low rents. Those businesses could signal to potential customers that the neighboring businesses are of lower quality. It might be worth it to wait for a high quality tenant rather than accept on that would anger the other tenants and hurt their businesses.
If you have someone move in at a lower cost, you can't raise their rent more than a certain amount over time. It might be better to let it sit empty a few years and get someone at your original price than let a business move in at a lower price and use it for 10 years.
But in other cases, which I think is ours it comes down to an investment.
Some people, so-called wealthy investors, just do it for tax write-offs. They don't really give 2 of anything if someone pays rent.