Is Cap Rate All I Need for Valuation? Capitalization rate is perhaps one of the most common valuation methods for commercial real estate. It is used to determine the rate of return on an investment property. The cap rate is calculated by dividing the property’s net operating income by the property’s market value, then multiplying the result by 100 to convert to a percentage. While the cap rate is...
Find Value in Existing Properties For industrial property owners, even the smallest increase in rental rates can make a vast difference in the profitability of the property when large spaces are being leased. Smart landlords take advantage of simple improvements that will help them obtain higher rental rates, reduce vacancies and lease properties faster. We have seen the following cosmetic...