By: LeAnn Hume, CCIM, CLS, is Senior Director – Retail/Investment Specialist with Cushman & Wakefield | Commerce firstname.lastname@example.org
If i had to pick the term most used in commercial real estate in the past 18 months, it would be “cap rate.” What is cap rate and what is its impact in terms of today’s commercial real estate market? It takes years of experience to truly be versed in cap rate as it relates to commercial real estate. Simply put, cap rate is the relationship between Net Operating Income on a property and the value of that asset. NOI/Value = Cap Rate.