They do not want the dark value with no tenant value to be less than mortgage balance at end of the primary lease term.You want to look at absorption  and comparable rents for industrial in the area to see how your property stacks up.If you buy at a high cap rate you want to look at the option periods for the current tenant in the lease.

But here's the part I took away: "Longer term, Denver's strong demographic trends bode well for absorption of any oversupply." 

But here's the part I took away: "Longer term, Denver's strong demographic trends bode well for absorption of any oversupply." 

DFW is growing and it all hinges on when/if that growth will stop.2017 DFW added 32,000 new rental units (Source)From June 2017 to June 2018 35,000 new homes starts (Source)2018 DFW has issued 19,000 new permits for rental unit construction (Source)The last of these sources from Texas A&M gives some great detail on market absorption of the new units and demand/vacancy rates.

 Absorption Rate, Vacancy/Occupancy Rates, Cap Rates? 

Goals: -stable cash flow, not as concerned about appreciation (check, assuming description is correct in saying they've had stable tenants. rental price should increase in the next couple years so i have some assurance there)-looking for min $100/unit (check)-C+ neighborhood (check, borders some B/A neighborhoods in upper Ohio City so hoping some absorption goes that way)Other things: -20% CoC return (almost check - Changing purchase price to $53,000 and have tenants also pay water/sewage would bump this deal right up to my criteria of 20% CoC.) 

Tough to predict ten years out, none of the data providers go out further than five.According to CoStar, 1-3 star office properties in Poway have a 3.4% vacancy that trends up gradually to 6% by 2022, with consistent negative absorption of about 2500 sf / quarter.

Class B inventoryHistoric Absorption Forecast AbsorptionYear to balancePhase of apartment cycleApartment transaction volumeThank you,Jason

The absorption rate in Lehigh county is best in the 100-200K price point right now.

More absorption in the market and less new builds, plus we have had moderate population growth.