Property Management
A capitalization (cap) rate that is rising in a Utah market typically suggests:
AProperty values are increasing
BInvestors are accepting higher risk or expect lower returns, often reflecting rising values
CProperty values are declining or expected to decline✓ Correct
DInterest rates have decreased
Explanation
A rising cap rate means investors require a higher return relative to price, which typically reflects declining property values or increased risk. Falling cap rates indicate rising values (investors accept lower yields).
Related Utah Property Management Questions
- A property management agreement typically includes all of the following EXCEPT:
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