> A building half rented at rent X is more profitable than a building fully rented at rent 0.5 X.
That's assuming rents would decrease by half, and also that it's still half occupied. A building half rented at X isn't more profitable than a building fully rented at 0.7 X. A building 25% rented at X isn't more profitable than a building fully rented at 0.5 X.
If the space is commercial, it's more valuable for the tenants. More traffic, more random sales opportunities. If half-occupied, it looks like a ghetto, and they only get deliberate traffic.
That's assuming rents would decrease by half, and also that it's still half occupied. A building half rented at X isn't more profitable than a building fully rented at 0.7 X. A building 25% rented at X isn't more profitable than a building fully rented at 0.5 X.