Investor's Corner - What is capitalization (cap) rate in a commercial property?
Thursday Jan 6th, 2022
ShareFor an investor, or anyone that is considering purchasing commercial real estate, the most common question that needs to be answered is this; WHAT IS THE CAP RATE? What does that even mean? Simply put, capitalization is the process of converting the income of a given property into a capital value. A capitalization (cap) rate has more than one rate embodied in it (i.e. the discount rate and the recapture rate). There are two different types of capitalization in the CRE market; direct... [read more]