Typically, if demand for a thing drops price drops with it. Sales are used to clear out old inventory. Why, then, are there still so many boarded up storefronts? Megan McArdle speculates that stores are reluctant to lock in at low rates and stores which require investment are reluctant to take advantage of short term leases.

The result is that the businesses ideally positioned to take advantage of the current glut in vacant store space are those which require little capital investment in a space and don’t necessarily need to be in the space for a long period of time.