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Comment by lobochrome | Hacker News Reader

Not to disagree with your main argument - but high end real estate often works that way. The developer is often cut into the topline of the stores.

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Not just high end real estate. Your local mom & pop in a strip mall somewhere (at least in the US) has a high chance of paying % of gross receipts to the landlord + rent.

This may vary by location and landlord but it absolutely is a thing. And a guarantee for any high-end, high-traffic location.

Luckily that's a rare thing and the vast majority if commercial real estate has no such rules whatsoever, even on main street.

Demand and supply. As long as there is a marketplace and people have a choice, the market will balance.

I have friends in strip mall businesses and they have moved locations for better landlords.

Sometimes there's something else at play though, because there are situations which cannot be explained by offer and demand. For example, developers are paid less in average than for example some consultant jobs while in my view (and I'm a consultant) both the skills required for a developer are higher while additionally the available workforce (supply) is lower for developers as well.

I mean, consultants, they grow on trees and I know what I'm talking about, I sometines interview new hires as part of my job. Developers, less so.

I don't have an explanation for this, it's a strange effect. But it's just an example, I have observed multiple times this unexpected deviation from the law of supply and demand.

My point is, this law is not a sure fire way to explain any price.

There is a higher demand for a certain kind of consultants (let’s call them “good”) and fairly low supply. There are plenty of people who call themselves consultants but nobody needs them since this is a bit of a winner takes all market (.e.g. like being a broker or even a lawyer to some extent)

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