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As the market cycle continues to inch to an end, investors arefinding they must rethink certain metrics to fit the current marketenvironment.
One example is a changing composition of total return. "So in amarket like this, where you think it's peaking, we'll try to getgreater than 50% of our total return from current cash flow," PaulHughson, executive managing director of C-III Capital Partners,said at a recent event. "We won't have a residual basis."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
