Post by
DanielDarden123 on Mar 11, 2021 1:06pm
Target Prices
Since valuation of commercial real estate is a function of NOI and the cap rate, providing a target price without the underlying assumptions is entirely futile and useless. A drop in cap rate from 5.50% to 4.50% would essentially raise NAV/u by ~20% in a heart beat. Would that drive the price up 20%? Very likely, without even factoring in an improvement in NOI!