These guys bought up portfolios a few years back, by and large with 1031 moneys, waited for the cap rates to compress, and now they are unloading. 

The market has definitely gotten hotter, cap rates have compressed, and more and more people continue to overpay just to "get in the game" which makes it worse for everyone.That being said, we continue to find deals that meet our strict criteria and project very attractive numbers for our investors. 

With MHP's becoming so popular right now, if the market doesn't drop out, they will be even more popular, and the ever consolidation of the industry, cap rates are compressing because more people are getting into the space that have lower return objectives and are fine with lower returns because they are placing their capital that has historically earned them lower returns than what they are used to based on never investing in this asset class.  

My main concern with it is that area is seeing a massive amount of new construction in both hotels and houses and if the economy gets soft the booking could get very competitive and rental rates could compress and occupancy fall.

And post-close, compressing LTL means bringing rents to market and thus whatever was shown on the rent roll and T12 is now rendered useless. 

The smaller price ranges things get more cap rate compressed as buyer pool gets larger and accepted returns lower.  

Considering the cap rate compression and the amount of new starts in all the major cities what do people think will happen to values in the next 5-10 years? 

Where you moved to Vegas ( Nevada), Arizona, etc. is highly cap rate compressed.

Your NOI is being compressed but appreciation has created a lot of dead equity. 

It's only been a couple of years and they have implemented only part of their initial plan but the cap rates compressed, allowing them to sell sooner than they originally thought.