Cap Rates Across Property Types

This question practices your understanding of how investors think about real estate risk, income stability, and pricing across different property types. In REPE interviews, you need to explain why some assets deserve higher required returns than others based on tenant quality, lease duration, operating complexity, and exposure to economic cycles. The interviewer is testing whether you can connect those business characteristics to valuation thinking and to the logic behind why one property type is viewed as more or less risky than another. This kind of question matters because it shows whether you can evaluate real estate investments from both an asset management perspective and an underwriting perspective.