Depends. GRM is a useful metric, but only useful in the proper context. You must compare your property's GRM to the local submarket. What is the average in that neighborhood/part of the city for your asset/class? In general, as a buyer, you want to be at or lower than the average GRM. However, that doesn't tell the whole story. In NYC right now, the GRMs for apartments will be SKY high, but because of the anticipated appreciation, they may still be a better bet overall than a low GRM in Toledo.
May 6, 2015