Learn how the terminal capitalization rate estimates property resale value at the end of the holding period, with examples ...

Forbes contributors publish independent expert analyses and insights. I’m an investment sales broker and real estate investor based in NYC. If an investor is considering what to look for in a real ...

Are multifamily capitalization rates destined to rise further? Yes, according to a model developed by the First American Financial Corp. that simulates cap rates based on various transaction volumes. ...

The relationship between capitalization rates and interest rates is more nuanced than first meets the eye. While nominal interest rates have an impact on real estate values, they do not have the same ...

The capitalization rate, or cap rate, is a key metric used in real estate to evaluate the potential return on an investment property. Expressed as a percentage, the cap rate helps investors compare ...

Multifamily investors can expect good things in 2023 if cap rates foretell the future. A new report from CBRE found that cap rates for Class A multifamily properties experienced their first ...

Research suggests 25% of existing offices will be obsolete by 2030, and 60% will be at-risk of obsolesce without significant upgrades. Office REITs have collapsed in value as property transaction ...

Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...

Although economic headwinds are still blowing, investors are optimistic that capitalization rates have reached their peak and will stabilize soon. Bond yields peaked at 5% in October before receding ...

Cap rates, or capitalization rates, are a fundamental concept in commercial real estate that plays a crucial role in evaluating the profitability and potential return on investment of a property.

According to CBRE's latest Prime Multifamily Underwriting Survey, both going-in and exit cap rates for prime multifamily assets were little changed in Q2, leading to a record-low spread between the ...

The CRED iQ research team focused upon the underwriting of the latest market transactions in our most recent report as we wanted to understand the key loan metrics across this universe to get a ...