2006-10-15 19:39:48 · 3 answers · asked by Muhsin O 1 in Business & Finance ➔ Renting & Real Estate
Your question is vague, but I'll try. The cap rate is the opportunity rate of return the investor of real estate requires or seeks to receive for investing in a given piece of real property like apartments, offices, retail centers, etc. Usually it is a cash on cash basis. As real estate values increase the cap rate decreases, as real property decreases the rate increases due to the "risk". Call a commercial real estate appraiser to get what cap rates are prevailing in your specific area. It is not tied to prime or the consumer price index.
2006-10-17 20:07:54 · answer #1 · answered by tnbroker1 3 · 1⤊ 0⤋
Typically, the CAP rate on commercial real estate is 6-8% depending on market.
2006-10-16 03:23:40 · answer #2 · answered by boston857 5 · 0⤊ 2⤋
What are you asking? And what city or country are you asking about?
Real Estate where?
2006-10-15 19:41:56 · answer #3 · answered by triniqueen40 4 · 0⤊ 2⤋