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Though the apartment sector has been strong recently, institutional buyers are now concerned about high prices and are shifting their portfolios to other sectors. What

Though the apartment sector has been strong recently, institutional buyers are now concerned about high prices and are shifting their portfolios to other sectors. What impact is this likely to have on cap rates in the apartment sector? Ch10

a.

Will "cap" the dollar amount investors will pay for apartment buildings.

b.

Cause "cap rates in this sector to fall

c.

Have no effect on "cap rates" as they are property specific

d.

Cause "cap rates" in this sector to rise

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