Cap Rate in Ithaca, NY

[Jane Kennedy]

I am new to investing in Ithaca, NY and wondering what the cap rate is here. I am looking at commercial properties to house my business as well as rental units to cover the building costs. 

[Stephanie Jacobson]

Hi Jane! I'm a commercial agent here in Ithaca, and I specialize in residential investment (multifamily and student housing). I also cover other markets, but Ithaca is where I actually live.

The Ithaca market is pretty tough. The Cornell students pay pretty high rents, and the overall growth of the city has put property values at an all-time high. Multi-families in student areas can go for as low as a 5-cap, typically around 6. 7 would be a good deal. The trick seems to be to have a connection with someone, or hear of something that happens off-market. I think that's pretty common in hot markets, though.

If you're looking for a multi-use space, something with storefront on the bottom and apartments on the top, that might be a bit easier to find. Feel free to reach out with any questions, I'd be happy to help!