3 ms·

Real estate prices depend on the market rate, not the buyer's wealth.

• TeMPOraL 6y ago
  Market rate depends on what the buyers will bear, on aggregate. Given that rents are sticky - it costs a lot to move yourself, and even more to move a business - the landlord could eat into a lot of their margins, if the landlord was so inclined.
  • scatters 6y ago
    And it also costs a landlord when a business moves. How likely would they be to find new tenants if the previous tenants mention that they were forced out by an above-market rent increase? You're tilting at windmills.
    • TeMPOraL 6y ago
      I'm not tilting at windmills, it's a common business question: how much can we exploit the other party without driving them away?