When analysing an acquisition or reviewing the operational budget of an existing property, you always do so with the assumption that interest rates will be higher at the end of the present mortgage term.Roy, based on the cap rate compression we have here I don't think many commercial buyers are thinking that way.

The rubber ring gets compressed and forms a seal inside your drain pipe.

That being said, there's good deals out there but there's far more bad ones in markets with compressed cap rates.

It feels like the margins in the area are compressing because of the appreciation vector as it relates to purchase price.

Or, any new investor comments or insights are welcome.My story in a compressed version.

Other than that I think the waterfall hurdles are too compressed in the 4-11% range.

The headwinds are not looking good seeing the metrics as a whole.In some respects building new all in for a 9 cap might possibility give some security in the market.For example I would not want to own the quote ( rehabbed ) old apartment buildings in Atlanta built in the 70's etc. at compressed caps.

Low interest rates + influx of investment capital from foreign sources have really compressed cap rates.  

This identifies, and reclassifies, the asset allowing us to compress the depreciation time for more favorable taxation purposes.

Because water won't compress, it will then just push out somewhere else besides your basement (like back out of the storm drain on the street).