Archive for the ‘Investment Property’ Category
Residential rental income streams can and generally do keep pace with inflation.
In a 200,000-sq.-ft. office building that pays $2 per sq. ft. in energy, a 10% reduction in energy cost translates into $40,000 in additional net operating income. At an 8.0 percent cap. rate, new-found NOI translates into $500,000 in increased asset value.
Properties previously considered viable for only non-residential tenants are often of a size and location that is highly desirable for conversion to a residential care facility. A combination of internet sales and a large population aging passed the point…