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

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 ...

Cap rates, or capitalization rates, are a fundamental concept in commercial real estate that plays a crucial role in evaluating the profitability and potential return on investment of a property.

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 ...

Real estate works on spreads – the cap rate at which a property is acquired versus the cost of financing that property. It is the REIT version of ROIC – WACC. A positive spread is required for ...