What factors contribute to an investment program’s earnings?
The most immediate sources of revenue growth are higher rates of building occupancy and increasing rents. As long as the demand for new properties remains well balanced with the available supply, market rents tend to rise as the economy expands. Occupancy in under-utilized buildings can be increased when skilled owners upgrade facilities, enhance building services, and more effectively market properties to new types of tenants. Property acquisition and development programs also can create growth opportunities.
