The general partner should be able to justify reasons for increased cash flow and equity appreciation. An example of projected increased cash flow would be correction of below market rents. Some placid owners do not know the market for the more attractive properties in their areas. As areas become more desirable, the land owners profit dramatically. The general partner should know the area well enough to be able to point out area trends and show the limited partners progress in the area of the property.
Inflation is also a major factor.
Real estate has kept pace with inflation, usually outpacing it. A good real estate investment should provide greater appreciation than staying even with inflation. A beautiful building in a superb location does not necessarily make a good investment. Buying a property because it has beautiful detail or Georgian columns, without examining the underlying economics, is self deluding. On the other hand, one should not necessarily pass on a property because it is an ugly building or the amenities are lacking.