Appreciation based on cash flow or Surrounding neighborhood

[Andrew Hooyman]

I recently read that commercial real estate even small apartment buildings appreciate based on cash flow not on the surrounding neighborhood like single family homes do.  I am wondering if that is accurate and exactly what types of properties appreciate based cash flow i.e can it be a fourplex in a residential area or does it have to be say an 8+ unit apartment building?  I always thought the surrounding area would have at least somewhat of a factor in dictating appreciation for any property.