From The ValuVault: Cap Rate 101

ValuNation por Nationwide Property & Appraisal Services

Notas del episodio

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.

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