Learn how the terminal capitalization rate estimates property resale value at the end of the holding period, with examples ...

Are multifamily capitalization rates destined to rise further? Yes, according to a model developed by the First American Financial Corp. that simulates cap rates based on various transaction volumes. ...

When investing in multi-family real estate, understanding capitalization rate, usually referred to as CAP rate, is crucial for making informed decisions. This rate serves as a benchmark for evaluating ...

Ask a broker what they sold a property for, and the answer is just as likely to be a percentage as a dollar figure. Commercial real estate lives and dies by the capitalization rate. The simple ...

Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...

The relationship between capitalization rates and interest rates is more nuanced than first meets the eye. While nominal interest rates have an impact on real estate values, they do not have the same ...

Forbes contributors publish independent expert analyses and insights. I’m an investment sales broker and real estate investor based in NYC. Traditionally, the cap rate has been one of the indicators ...

—More moderate commercial real estate price growth reflects a shift to a new normal, rather than significant industry disruption, says Senior Commercial Real Estate Economist Xander Snyder— “Investors ...

Cap rate and yield are both important metrics used in commercial real estate investing to assess the potential return on an investment property, but they serve slightly different purposes and provide ...