Another deeper property-economics update is now live.

This one started with a pretty simple player question: if I buy a property well, improve the operations, and then move through different market cycles, is the game actually recognizing what happened to that property?

The old valuation model wasn't doing that clearly enough, so I went deeper than just changing the number on the screen.

WHAT CHANGED

PROPERTY VALUATION

Owned-property values now respond to both the property itself and the market around it.

For multifamily and self-storage, valuation now considers a blend of actual signed rents and stabilized market income instead of treating market rent as the whole story.

Vacancy matters. Rent performance matters. Operating expenses matter. Market cap rates matter.

Most importantly, your negotiated purchase price is now treated as what it should be: historical acquisition cost. It no longer becomes the permanent anchor that determines what the property is worth years later.

Property Management now shows a valuation breakdown so you can see the major pieces behind Indicated Market Value and Current Value instead of being handed a mystery number.

NNN valuation is also more lease-aware. The remaining lease term matters, rents move toward market as a lease approaches expiration, and vacant NNN properties use the same leasing environment that actually governs their chance of finding a tenant.

MARKET VALUE RECOGNITION

Indicated Market Value is the current appraisal-style target.

Current Value is the recognized value used by the rest of the family office.

Current Value now moves toward the indicated value over time instead of getting the old random monthly noise and large separate market-cycle jumps.

That recognized Current Value remains the value used for net worth, refinancing, sale offers, reporting, progression and other downstream systems.

PROPERTY TAX BASIS & DEPRECIATION

While working through the valuation system, I found a separate accounting problem that needed fixing too.

Qualifying capital improvements were reducing your cash, but their cost was not being properly included in depreciation and adjusted tax basis.

That has been corrected.

Qualifying property CapEx now:

• increases adjusted tax basis;
• receives its own depreciation treatment beginning when the project is completed;
• reduces future taxable disposition gain through the proper adjusted-basis calculation; and
• remains separate from market value.

Accounting > Tax Strategy now includes a Property Tax Basis & Depreciation table showing original cost, capital improvements, depreciable basis, accumulated depreciation, 1031 adjustments, transition credits and adjusted tax basis.

Property-sale previews and settlements now use that same adjusted-basis authority.

New 1031 exchanges also carry the deferred gain into the replacement property's tax basis rather than treating purchase price as a fresh tax basis.

Existing saves are supported. The migration does not go back and rewrite closed historical tax years, prior cash, old Annual Reports or transaction history.

REGIONAL CAP RATES

I also corrected a quieter AcrePilot issue.

Persistent listings and Board Counsel comparisons now continue to respect the selected region's cap-rate environment as market cycles change. The regional component could previously disappear from those comparisons after a listing had been generated.

THANK YOU

This update came out of some extremely detailed player questions, screenshots and save-file testing.

That kind of feedback is exactly what Early Access is for. If the game is going to model real financial systems, I want the numbers to have understandable causes rather than just moving because the game says so.

As always, keep the weird edge cases coming.