Tags Posts tagged with "cap rate"

cap rate


Stakeholders such as investors, brokers, lenders and appraisers often use these seemingly simple metrics to calculate the market value of an asset. Here are five things you need to know about cap rates and multiples.


Cap rate (CR) is arguably the most often quoted metric for expressing property value. Yet, it tells only half the story. Why is there such emphasis on CR?


Cap rates and the direct capitalization approach to valuation is a useful tool to have in your toolbox as an investor. However, there are many supportive or alternative valuation methods besides just this one.

Low cap rate


Real estate investors must be very careful about purchasing an investment property with a low cap rate, at which many retail plazas and multifamily properties are currently trading, with a down payment of 25 per cent or less.