Realty Use
Detailed tool and analysis for Realty Use in Philadelphia.
Historical Data Table
| Asset Class (Philly) | Average Cap Rate (Q1 2024) |
|---|---|
| Class A Multi-Family | 5.25% - 5.75% |
| Neighborhood Retail | 6.50% - 7.50% |
Frequently Asked Questions
What defines commercial vs residential for ROI?
Commercial typically relies on NNN leases and cap rate valuations based on NOI, while residential under 4 units relies heavily on comps.
Are cap rates higher in Philly compared to NY?
Generally, yes. Philly offers a higher yield, though often with less aggressive appreciation.
Common Mistakes
- Applying residential expense ratios (often 35-45%) to NNN commercial properties.
- Ignoring local neighborhood vacancy rates when projecting NOI.