The multiple shifts for a variety of reasons, the main one being quality of cash flow.
The “quality” of the cash flow from highest quintile economic segment, dollar for dollar is perceived to be a higher quality (more likely to be paid, paid on time, with less unexpected expense) than the same dollar from the lowest quintile.
Basically, the same kind of thing as corporate bonds. Because of the kinds of tenants and the price range of La Jolla, a $1000 of rent get’s Aaa bond pricing (low return per $ of capital), the same $1000 of rents in say Rancho Bernardo maybe get Aa bond rating and a rough section of town gets B or Bb bond rating (higher face value of return per $ of capital).
