TIPS ON CALCULATING THE CAP RATE ON AN OFFICE PROPERTY
CRE Online
APRIL 4, 2020
The capitalization rate (or “cap” rate) is one of the primary measuring tools of any office building investment. It is a short form method of deriving the rate of return based on the purchase price and allows you to compare many properties simultaneously to select the highest yielding. But there are some important considerations required in this area.
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