Cap rates on the commercial side have suppressed over the last couple years, but this doesn't just mean lower return, it also means lower risk. 

It was suppressing the current condo rental market a bit based on our experience.

One thing I would consider is that when an industry has very few barriers to entry, there is at least a potential for a lot of competition, price suppression, and degradation of the industry's integrity due to low-skilled entrants.  

This is leading to vacancy in the Class A market that could trickle down and suppress rents in over classes.

Fire suppression systems = expensive so if there are ways around this I'd love to know about it. 

last time i was in Orlando they were having fires as well.. but harder to tell since there are no mountains LOL And they tend to move slower. its the steep mountains that create a chimney effect and the intense under growth.. because we suppress wild fires and keep nature from burning the under story like what happened 200 years ago before we had aerial tankers.  

When knocking down walls etc. one cost that can be big is if the local city or county requires adding a fire suppression system to each unit with sprinklers etc.You have to remember older apartments many times are grandfathered in on old codes but when you go to do studs up they add all this crap that you didn't know about before driving up your rehab per unit.The main water line from the street to the building could be compromised and need replacing.

Thanks Brandon Nelson,I did consider that the market is probably a little saturated with suppressed home sales right not.

For example, this might have suppressed interes rates and benefited mortgage borrowers.

New York also comes to mind as pricing was suppressed for a bit and then as of late it has begun to rise which is getting exaggerated as investors re-enter the market in select areas.This phenom in my opinion is important to keep in the back of your mind as the public may act in an unorthodox manner to some thinking.