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 ...

Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...

Cap rates are one of the best indicators of forward returns in REITs. It is not 1 for 1 in the sense that a 5% cap rate does not translate to a 5% forward return, but a higher cap rate at purchase ...

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 ...

Over the past few years, we have observed an inverse relationship between share prices in the REIT sector and interest-rate movements. We believe a major reason is that all commercial real estate ...