Properly Underwritten Cap Rate Calculations for Commercial Real Estate. It is not a pro-forma folks.

Posted by admin on November 13, 2012 under by Tim Davis, Commercial Real Estate Definitions, daytona beach commercial real estate, Good Info - Read It | Be the First to Comment

I was having dinner with some friends the other night, and in the group was a fellow real estate professional. He primarily sells residential, but does a bit of commercial work from time to time. He was telling me about a commercial property he has for sale, and commented “it should really sell, it is XX cap” Instantly my mind starting racing, well, sure it is a XX cap rate, but with what financial underwriting standards?

I’ve seen countless sellers over the years haul me into their office, wanting to list property for $XXXX dollars, which by their calculations is a 9% cap rate. They have a gross revenue number of all the rents collected, and on the expense side, property taxes, property insurance, and some common area Read more of this article »

Bookmark and Share

What is a Cap Rate?

Posted by admin on December 3, 2011 under Commercial Real Estate Definitions, daytona beach commercial real estate | Be the First to Comment

daytona commercial real estate, what is cap rate, what is triple net, what is a gross lease, gross rent,

What is a cap rate? Cap Rate is short for “capitalization rate” or the rate at which you are capitalizing on your investment. Think of it as a return on investment (ROI)

An 8% cap rate means the real estate asset is returning the owner 8% of his investment per year.

Bookmark and Share