Property Valuation
What are cap rate trends in Nevada's commercial real estate market indicating when cap rates compress (decrease)?
AIncreased risk and declining property values
BInvestor demand is high relative to available income, pushing prices up and yields down✓ Correct
CHigher vacancy rates across Nevada markets
DDecreasing rental rates in the commercial sector
Explanation
Compressing cap rates indicate strong investor demand for Nevada commercial properties, with buyers willing to accept lower yields (and thus pay higher prices) for the income stream. Lower cap rates typically signal a strong seller's market for income properties.
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