Which of the following is considered a sensitivity variable in real estate?

The exit cap rate is considered a sensitivity variable in real estate because it significantly impacts the valuation of an investment property. The exit cap rate is used in the calculations when estimating the future selling price of the property at the time of exit from the investment. Changes in the exit cap rate can alter the projected returns and the attractiveness of an investment.

In practical terms, if the exit cap rate increases, it typically signals a decrease in expected property values, which can affect the overall investment strategy and decision-making. Therefore, investors closely monitor and analyze this variable to understand how it might impact their investment outcomes, making it a key aspect of sensitivity analysis in real estate finance.

While the other options may influence real estate decisions or valuations, they do not have the same direct and quantifiable impact on investment returns in the context of sensitivity analysis.