The Going-In Capitalization Rate Can Vary Significantly by Property Quality

question 31

Multiple Choice

The going-in capitalization rate can vary significantly by property quality. Which of the following classes of properties within a particular property type would be expected to have the highest cap rates?

• A) First tier properties
• B) Second tier properties
• C) Third tier properties
• D) Cap rates would be equal across all classes within the same property type

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