The $10 number is the base rent, the triple nets are the $5. As such the base rent just represents the cost of money when the structure was built, which most o

The $10 number is the base rent, the triple nets are the $5. As such the base rent just represents the cost of money when the structure was built, which most of the time was decades ago. It's been paid off many times over and so the "right" price is what the market will bear. This is, for lack of a better explitive, fucking awful for the economy. If you have a restaurant district and everyone's paying "maximum sustainable rent", the customer is getting the "minimum sustainable product". If you spend $10 on a salad, more of that money that could be going to fresh local lettuce is being spent on rent so you get a worse product for that $10. The existence of the landlord isn't making the economy bigger better faster wherever, they're...literally just rent seeking.