Cap rates, or capitalization rates, are a fundamental concept in commercial real estate that plays a crucial role in evaluating the profitability and potential return on investment of a property.

Are multifamily capitalization rates destined to rise further? Yes, according to a model developed by the First American Financial Corp. that simulates cap rates based on various transaction volumes. ...

Ask a broker what they sold a property for, and the answer is just as likely to be a percentage as a dollar figure. Commercial real estate lives and dies by the capitalization rate. The simple ...

Cap rate and yield are both important metrics used in commercial real estate investing to assess the potential return on an investment property, but they serve slightly different purposes and provide ...

When investing in multi-family real estate, understanding capitalization rate, usually referred to as CAP rate, is crucial for making informed decisions. This rate serves as a benchmark for evaluating ...

—More moderate commercial real estate price growth reflects a shift to a new normal, rather than significant industry disruption, says Senior Commercial Real Estate Economist Xander Snyder— “Investors ...

Cap rates are expected to move back to higher historical levels, potentially higher than the current 6% or 7%. The risk-free interest rate, the 10-year U.S. Treasury Bond yield, is a key reference ...