Most of the rise in commercial rents in SF is related to the non-linear economics of the top tech startups. If your business model is scalable enough (and you'r

Most of the rise in commercial rents in SF is related to the non-linear economics of the top tech startups. If your business model is scalable enough (and you're executing properly), the vast amounts of available capital mean that rent is a pretty negligible expense. The trend we're seeing in the prices of things that software startups need to pay for-- primarily talent and office space-- is that they're also starting to follow a power-law distribution. I wouldn't be surprised if, in future, the most desirable commercial real estate and the most desirable employees start costing an even larger multiple compared to the median.