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The Going-In Capitalization Rate Can Vary Significantly by Property Quality

Question 2

Multiple Choice
The going-in capitalization rate can vary significantly by property quality. Which of the following classes of properties within a particular property type would be expected to have the highest cap rates?

The going-in capitalization rate can vary significantly by property quality. Which of the following classes of properties within a particular property type would be expected to have the highest cap rates?


A) First tier properties
B) Second tier properties
C) Third tier properties
D) Cap rates would be equal across all classes within the same property type

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