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soundadvisors: Will Commercial Real Estate follow the Residential Decline?
- 11/10/07 04:45 AM
Depends on who you talk to, however the short answer is NO and here's why.
Each are affected differently, and following is a brief description.
The market value of commercial real estate is determined by the state of employment and interest rates. Commercial real estate is a business with a profit and loss statement. Hopefully, that profit and loss number is positive and provides cash flow. That number is then transitioned into a capitalization rate and is used as a comparison against other yields of equities and debt.
The value of residential property is also determined by employment and interest rates. However, there is no … (7 comments)
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Depends on who you talk to, however the short answer is NO and here's why.
;)
;)
