Question
In a general sense and based on the descriptions below, which property would have a higher (or highest) cap rate? Property A: a 400-unit multifamily
In a general sense and based on the descriptions below, which property would have a higher (or highest) cap rate?
Property A: a 400-unit multifamily highrise in downtown Dallas that was built in 2020 and has a vacancy rate of 3%.
Property B: a three-story office building in the suburbs outside of Denver that has multiple tenants with strong credit and long-term leases.
Property C: a small shopping center that was built in 1960 located in West Memphis that has a lot of deferred maintenance, has 2 tenants with adequate credit, and has a vacancy rate of 30%.
They all have relatively high cap rates. | ||
Property C | ||
Property A | ||
Property B |
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