The conversation between human and AI assistant.
What is the average cap rate for commercial real estate in New York City?
I see. Are there any other factors that can affect the cap rate in New York City?
Yes, other factors such as interest rates, economic growth, and property taxes can all impact the cap rate. Rising interest rates can lower cap rates as they increase the cost of borrowing money for investors. Strong economic growth can increase demand for commercial real estate, driving up prices and cap rates. And higher property taxes can also lower cap rates as they increase the operating expenses for property owners.