I was listening to a podcast last week and they brought on someone to talked about commercial real estate.
The guest shared some rather general ideas about CAP Rates and it occur to me that I didn’t write anything about it.
CAP Rates are a pretty common term in the property world.
If you own a property developer who owns investment properties, or a real estate investment trust (REIT), flip to the part where they value properties, and you can see them using CAP rates as a way of valuing a property.
But there are more to understand about CAP Rates:
it is use to compare between properties, a portfolio of them or versus the specific market segment it could be affected by interest rates but in what way market CAP rates versus your property’s current CAP rates does it embed any growth factor into it?This article is applicable
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