It's easy to understand what the "going-in" cap rate is for the acquisition of an existing income-generating property. It's a little murkier when it comes to real estate developments. To review, the going-in... read more →
How to select future cap rates Cap rate comparisons across properties
What Is Cash-On-Cash Return? Definition Of Cash On Cash Return And Explanation Of How It Can Mislead
Question from one of our readers: what is cash-on-cash return in a commercial real estate investment context? Answer: At its most basic, cash-on-cash return is defined as annual pre-income tax... read more →
Cap rates (capitalization rates) are still one of the most-mentioned and least-understood elements of commercial real estate. What is a cap rate? The simplest way to define a cap rate... read more →
A good question. Here are my thoughts: A property purchaser's discount rate represents their perceived opportunity cost in making one investment over another investment of comparable characteristics, including valuation, risk... read more →
Generally speaking, the cap rate for a specific commercial property will rise over the years as new competitive supply comes online, while the subject property ages physically. This assumes the... read more →
Yesterday 80 real estate professionals and students joined online to learn about cap rates. If you missed the presentation and Q&A, check them out below! -Bruce "Great explanation of the... read more →