Due to their consistent income, absence of management worries, and stable tenants, build to suit triple net (NNN) leases are particularly tempting to investors wishing to diversify their portfolio with a reliable investment. And employing capitalization rates is one of the most popular and significant methods for valuing these builds to suit NNN lease assets. […]
HOW TO MEASURE BUILD TO SUIT DEVELOPMENT CAP RATES Read More »
I’ll tell you right now that cap rates are one of the most commonly used terms in real estate and one of the most misunderstood. Even though it’s widely used, I’m constantly surprised by how little people understand cap rates. If you ask ten brokers, “what is a cap rate?” they might give you a
GUIDE TO UNDERSTANDING CAP RATES WHEN INVESTING IN REAL ESTATE Read More »
Midway through March, the Federal Reserve Board agreed to increase interest rates for the second time in as many months. Therefore, the next logical question is, where will cap rates go from here? In addition, do interest rates tend to stay at this level? This boost will target the fund’s rate between 0.75 to 1
WHAT’S NEXT FOR CAP RATES? Read More »
The ratio of a property’s first-year Net Operating Income (NOI) to its purchase price is called a capitalization (cap) rate. For instance, an asset with a NOI of $80,000 and a purchase price of $1,000,000 has a capitalization rate of 8% ($80,000 divided by $1,000,000). This capitalization rate calculation may also be used reverse to
REAL ESTATE INVESTMENT – MUST KNOW FACTS ABOUT CAP RATES Read More »
