Refuge Investments

Banner

Knowledge

Avoid These Pitfalls When Calculating Commercial Property Values.

Refuge InvestmentsOctober 11

Avoid These Pitfalls When Calculating Commercial Property Values.

Capitalization rates are often controversial and misunderstood variables in commercial real estate valuation equations. To value properties, most buyers and sellers prefer an income approach, which analyzes cash flows to determine debt service and investor return — typically the internal rate of return — so it’s easy to see why cap rates are scrutinized.
In fact, no other valuation aspect is debated as heavily as cap rates because unsupported data often lead to inaccurate commercial property valuations. By understanding the fallacies that exist, real estate professionals can perform more thorough financial analyses for their clients.

Cap Rate Follies
Avoid These Pitfalls When Calculating Commercial Property Values.
https://www.ccim.com/cire-magazine/articles/cap-rate-follies/?gmSsoPc=1

Search our entire site here:

Browse:

Want to Learn More

Click below to learn more about passive cash flow.

You will receive more information on how to partner with us and we will keep you informed of our activities.

Learn More