2006-11-02 03:06:56 · 4 answers · asked by Brian M 1 in Business & Finance ➔ Renting & Real Estate
In regard to commercial property, the yield, otherwise known as CAP RATE is the rate at which a single years income expectancy is capitalized...it gives the buyer an idea of whether the current value (sales price) is at above or below market. Can also let you know if a property is over priced...e.g. most CRE have a 6-8% CAP rate depending on market and this is calculated by taking the rental icnome divided by the sales price or value....hope that helps...
2006-11-02 06:22:09 · answer #1 · answered by boston857 5 · 1⤊ 0⤋
Yield is the potential earnings a property may have, particularly rent
2006-11-02 11:39:12 · answer #2 · answered by Martin14th 4 · 0⤊ 0⤋
Your return / your cost = your yield
2006-11-02 11:15:32 · answer #3 · answered by bloke7474 2 · 0⤊ 0⤋
You just asked this.
2006-11-02 11:09:16 · answer #4 · answered by bigpuppax 2 · 0⤊ 0⤋