Normally, what relation should be most common between the expected "going-in" and expected "going-out" cap rate?
A) The going-in cap rate should be higher than the going out.
B) The going-out cap rate should be at least as high as the going-in rate.
C) There is no particular relation between the two.

Question

Quizplus · Accepted Answer

The expected "going-out" cap rate is typically at least as high as the "going-in" cap rate to account for the increased risk and uncertainty over time. This conservative approach in commercial real estate investment helps investors ensure they are not overestimating the future value of the property.

Normally, What Relation Should Be Most Common Between the Expected