Investors are advised to look at cash flow from income as a source of benefit rather than property-value appreciation, according to the PwC-Urban Land Institute report on commercial real estate.
"Rent recoveries have matured in many markets and across property types. Cap rates have been compressed, but are leveling off," the report says. "Appreciation is likely to be muted even in secondary and tertiary markets. That means focusing on cash flow and asset management in the immediate and midterm future."
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