Multifamily real estate performance: Examining the influence of property age, size, and non-rental revenue on profitability.

摘要

In the highly competitive market of commercial real estate, optimum property performance is essential. Improved understanding of property factors influencing rates of return can help attain this goal. This study examines various characteristics of multifamily properties and their influence on property performance. The specific multifamily real estate characteristics being analyzed are property size, age, and non-rental revenue.; The purpose of this study is to analyze the influence of multifamily property size, age, and non-rental revenue on property performance. Research was conducted involving multifamily real estate data obtained from a commercial lending institution. A total of 150 multifamily properties were randomly selected for analysis. Operating statements and real estate descriptions from these properties were collected and examined.; Research findings indicate that older multifamily properties generate higher internal rates of return than newer multifamily properties. This study also found smaller multifamily properties do not generate higher internal rates of return than larger properties. Finally, this research indicates multifamily properties with higher ratios of miscellaneous income to effective gross income do not generate higher internal rates of return than multifamily properties with lower ratios of miscellaneous income to effective gross income.