Maybe the government regulation as practised by cronyist goverments. Seriously, I don't think that a hypothetical government enforcing standards for square feet measurement would create a huge barrier to entry into the property business.
You'd prefer it to be legal if your gallon of gas only actually contained 3/4 of a gallon?
Govt gets more involved as the amount of money goes up.
The NYC govt doesn't much care about a small deli. It gets seriously involved if you're developing a whole block, or trying to build a wal mart.
"Most barriers to entry are created by government regulation."
I did not say:
"Most government regulation creates barriers to entry."
But I think it suffers a different kind of barrier to entry. It's an unsexy line of business, and for people who want to own property it has to compete with mindshare for the far more familiar field of residential property management. So you don't see the average Joe thinking he can buy an office building and make it profitable--what does Joe know about office buildings, compared to houses and apartments?