From The ValuVault: Cap Rate 101

25/06/2025 1 min Temporada 3 Episodio 6
From The ValuVault: Cap Rate 101

Listen "From The ValuVault: Cap Rate 101"

Episode Synopsis

Cap rate = one of the most important metrics in CRE—and Charlie Johnson is breaking it down.– Formula: Net Operating Income ÷ Purchase Price – Current average: 6–8% for industrial, nearing 10% for lodging – What it tells you: Lower cap rate = higher valuation, less risk Higher cap rate = lower value, higher risk📌 Mortgage pros: Compare to market averages and verify income. 📌 Buyers: Confirm NOI and target stable returns.Need a BPO or AVM for a commercial property? Head to nationwideamc.com for more info.