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Exactly. That is the whole deal with being a commercial landlord. It isn't just "upward-only rent adjustments" every 5-10 years and cream a load of profit. Ther

Exactly. That is the whole deal with being a commercial landlord. It isn't just "upward-only rent adjustments" every 5-10 years and cream a load of profit. There is meant to be some risk in return. In London a lot of commercial rents in newly gentrified areas have went up 10x+ in the last 10-20 years. There has been an awful of lot of value transferred to these landlords for really not a huge amount of work in many cases.

sharklazer 6y ago
Yes, but we're overleveraged. And I mean "We're" because the people who hold the debt is actually quite spread out and obfuscated. I don't disagree with you in principal, but unfortunately, we have a parallel problem of how the debt market works, which is essentially to generated and then sell the debt to investors, diffusing the "risk", or rather, I think of it more as displacing it. Much less incentive for active participation in investing via debt. People who end up holding the debt are many steps away from being able to have conducted due diligence. Not to harp on a point, but the big theme of this whole fiasco starts with the displacement of risk from the risk taker. And since we've permitted that, we're all stuck with it.
- linuxftw 6y ago
  > People who end up holding the debt are many steps away from being able to have conducted due diligence. And they should face the losses. And maybe learn from their mistakes. And the people that were responsible with their money, didn't take on the risky assets that generated out-sized returns will be able to invest because they preserved capital.
davidf18 6y ago
It's called rent-seeking, in this case there is an artificial scarcity of land use through politics of zoning density restriction. In microeconomics, rent-seeking along with externalities and information assywmety are three cases of market failures. The fix for this rent-seeking is quite easy: simply reverse the regressive laws that create artificial land use scarcity, those laws that create zoning density restrictions. David Ricardo first popularized this notion when he as a member of parliament overturned to "Corn Laws."

sharklazer 6y ago

Yes, but we're overleveraged. And I mean "We're" because the people who hold the debt is actually quite spread out and obfuscated. I don't disagree with you in principal, but unfortunately, we have a parallel problem of how the debt market works, which is essentially to generated and then sell the debt to investors, diffusing the "risk", or rather, I think of it more as displacing it. Much less incentive for active participation in investing via debt. People who end up holding the debt are many steps away from being able to have conducted due diligence. Not to harp on a point, but the big theme of this whole fiasco starts with the displacement of risk from the risk taker. And since we've permitted that, we're all stuck with it.

linuxftw 6y ago
> People who end up holding the debt are many steps away from being able to have conducted due diligence. And they should face the losses. And maybe learn from their mistakes. And the people that were responsible with their money, didn't take on the risky assets that generated out-sized returns will be able to invest because they preserved capital.

davidf18 6y ago

It's called rent-seeking, in this case there is an artificial scarcity of land use through politics of zoning density restriction. In microeconomics, rent-seeking along with externalities and information assywmety are three cases of market failures. The fix for this rent-seeking is quite easy: simply reverse the regressive laws that create artificial land use scarcity, those laws that create zoning density restrictions. David Ricardo first popularized this notion when he as a member of parliament overturned to "Corn Laws."