Thoughts on using SOFR rates for investment analysis?

[Adam Taylor]

I have noticed a lot of institutional shops and real estate private equity firms will factor in SOFR rates into their analysis. Do you all think it's necessary to do so when investing in multi-family properties from 1-50 units? If so, can you elaborate on how you use them as I am unfamiliar with how to incorporate them? I understand they serve as a benchmark when calculating the discount rate but I see people try to predict them on a 10-year basis which seems incredibly difficult for first-time investors and ultimately, we never know what they will be. 

- Adam