Archives October 2021


NOI and Cap Rates: The Ugly Truth

Two of the most common metrics used to measure the profitability of a multifamily real estate investment are net operating income (NOI) and capitalization rate (cap rate). These metrics can also be used to provide a quick comparison between different properties in order to help investors make informed decisions about which investment might be the best deal.

What some beginner investors don’t realize is that NOI and cap rate calculations are not always the most accurate tools for predicting a property’s profitability. The KataLYST Team has spent countless hours exploring commercial real estate trends and common practices, including deep dives into calculations such as NOI and cap rate. Read on to find out more about how to calculate cap rate from NOI accurately and which metrics might be more accurate for determining profitability in multifamily markets.

Read More


Commercial Real Estate Trends: The Impact of Inflation for Investors

The prices of goods and services in America change constantly. While some brands raise their prices, others offer discounts to try to keep up with the economy. For many years now prices have been rising, which causes inflation. In times of inflation, the value of the dollar decreases meaning the dollar doesn’t stretch as far as it used to. While inflation can have a negative impact on consumers and even professionals across many industries, multifamily property owners can actually benefit from it.

The KataLYST Team has been studying and keeping up with commercial real estate trends in Des Moines and surrounding communities. We also specialize in multifamily properties and are committed to helping Iowans get the most out of their investments. Read on to hear our top tips for multifamily property investors in times of inflation.

Read More