Cap Rate: Capitalization Rate used in commercial real estate to assess value
1 year ago
1
Want to learn more about Cap Rate in commercial real estate? Cap rate is a measure of the health of a real estate asset. Generally, the higher the cap rate the better the acquisition price is, but it also comes with higher risks which need to be carefully considered. A lower cap rate compared to the local real estate environment, shows a stronger asset with lower risks, but also a much higher acquisition price.
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