The classification of commercial buildings is very important to keep in mind as an investor or tenant. Here’s a kickstart to your understanding of the pros and cons for each class.
Here at Capstone, we track the apartment projects in our local market so we can better understand how the future value of existing stock may be affected. Here, we share the results of our yearly summary.
There is clear data that shows the difference in CAP rates for the different classes of multifamily properties. However, looking at CAP rate alone doesn’t tell the whole story – appreciation, cash flow, and tax benefits are the trifecta. The end answer to what type of property is best comes down to your personal choice – which component of real estate do you most need right now? Let that guide your answer and you’ll be well on your way to a profitable return.
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