As an investor, the number one job is to never lose money. Even in real estate, the value of assets is often hard to control. For instance, the value of your single family residence is largely influenced by the value of nearby properties, otherwise known as comparables (“comps”). In commercial real estate, the value of the property is determined by the income the property generates. For the multifamily housing sector, income received by the property is directly related to the monthly rent. Although rents have increased substantially in recent years, rent growth is projected to slow. Closely watching ‘main street’ this year will assist in pricing rentals accurately. Pricing spaces competitively will be key to keeping vacancies low and your investments growing.
