Over the last 3-4 years, I've spent a lot of time around RE folks. I can't speak for places like malls, but I have encountered quite a few that own your typical

Over the last 3-4 years, I've spent a lot of time around RE folks. I can't speak for places like malls, but I have encountered quite a few that own your typical plaza/strip mall, and this is not at all how they think. Most are relatively simple folks, who make less than your typical SV SW engineer. Their goal is not to maximize profit, but rather to not work. That's why they really like triple net lease[1] - so they don't even have to think about it. Once they've covered all their expenses so they can "retire" from their regular job, they put all the extra income into other RE efforts (namely buying other such strip malls). For lease renewals, they'll usually charge just the market rates. They are very unlikely to hyperfocus on one particular business they rent out to - they have better uses of their time, and don't want volatile income. They want something steady and reliable. They know restaurants have thin margins and may fail. There's an Indian restaurant in one of the top food streets in my city that people love - a lot of folks consider it amongst the best in the city. I once jokingly told the owner "What will it take for you to open in my suburb?" She said that before she opened where she did, she tried to open at a plaza close to my house, but the rent was too high. I was shocked - that plaza is a graveyard of restaurants and businesses, and is not at all a happening location. Yet a top food street in the city charges less? It's not a crazy story. It happens often. [1] https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp https://www.investopedia.com/terms/t/triple-net-lease-nnn.as...