The cause and effects can be weird sometimes. Suppose that guy wants a lot for rent but no one can afford it. He either lowers the price (in turn the value of the property) which depreciates the value of the other property owners in the area. Lower values then shakes out eventually in other taxes.

So the other route is we end up subsidizing small businesses to pay more for rent than they can afford (or to your point, should be charged). This means you the local resident are footing the bill either with local taxes or a federal subsidy.

I don’t have an answer here but these things get complicated quickly. Setting an exponential tax on a vacant property (or any property) sounds like an easy way to drive investors out of the market. Then your downtown is dead either way.

Curious other thoughts or maybe a solution to vacant holdings.