With the current inflation rate today what yield should we work with to calculate a fair price on a commercial site S&amp;P Agreement?
Have never invested in commercial but have been watching from the side line for a while. I have two potential properties that I’m eyeing up and think I might finally have the guts to go for one.
[{"id": "i8xh1ka", "text": "Sorry but but too broad, market, industry, tenant, term all play a factor\u2026\n\n\nIn my market we are at the downward of a peak and it\u2019ll only get worse with the interest rates\u2026 last thing I\u2019d do now is get in on a slightly better cap rate than the last few years where inflation was near 0\u2026 only to have my rent increases not even making up for inflation rates.", "replies": [], "depth": 1}, {"id": "i8xrzcm", "text": "Why would you be a buyer right now?", "replies": [], "depth": 1}, {"id": "i913zzh", "text": "Equity yields vary wildly by property type, gonna have to be more specific. Could be as low as 5% to as high as 20%. Most data I've seen put it overall at between 10% to 18% average depending on the asset.", "replies": [], "depth": 1}]