What`s In A Cap Rate? Unpacking The CRE Benchmark And What It Signals

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 calculation — net operating income divided by market or purchase price — is used as shorthand to describe the health and direction of properties, asset classes, markets and the entire sector...