Real Estate & REITs
Why is multifamily considered an inflation hedge, and what is the flip side of that feature?
Model answer
Apartment leases run about a year, so the entire rent roll reprices to market rapidly - in inflationary periods landlords capture rising rents almost immediately, unlike office or net-lease owners…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Real Estate & REITs
- What is net operating income (NOI), and what does it exclude?
- What is a cap rate, and how do you use it to value a property?
- Why does a LOWER cap rate mean a HIGHER property value?
- What drives cap rates up or down?
- How should you think about the spread between cap rates and interest rates?
- What is the difference between a going-in cap rate and an exit cap rate, and why do underwriters usually assume the exit cap is higher?