For years, the commercial real estate market has been sizzling.
Cap rates are down. Prices are up.
Nevertheless, you managed to beat out the competition and buy a few shopping centers.
For years, the commercial real estate market has been sizzling.Cap rates are down. Prices are up.Nevertheless, you managed to beat out the competition and buy a few shopping centers. To justify the price you paid, however, you need to increase the net operating income ('NOI') from your property. Now, however, the economy may be facing the headwind of a slowdown, if not an outright recession, which creates resistance to rent increases; so you may not be able to rely on ordinary rent increases to bolster your NOI.
For years, the commercial real estate market has been sizzling.
Cap rates are down. Prices are up.
Nevertheless, you managed to beat out the competition and buy a few shopping centers.
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