As Storm Clouds Lift, Commercial Real Estate Transitions to Sustainable Growth
Posted on Mon, Oct 04, 2010
As more investment capital flows into the commercial real estate sector, we expect capitalization rates — the initial returns to investors based on purchase prices and net operating income — to drift downward over the next few years. With rising net operating income and cap-rate compression, it is possible that the NPI index could achieve annual total returns well above the long-term average over the next several years.
Read full articleNational Real Estate Investor