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Check all true statements regarding Cap Rates A form of average cap rate is used to valuate commercial properties depending on its industry and/or location
Check all true statements regarding Cap Rates
A form of average cap rate is used to valuate commercial properties depending on its industry and/or location | ||
Cap Rates are used when valuating commercial properties via the cost approach | ||
As cap rates used to valuate a property decreases, the property value increases holding all else equal | ||
Cap Rate for One Property = Property Value/NOI | ||
Valuing a property via Cap Rates is analogous to receiving a perpetuity in the form of a NOI being the payment every year and the Cap Rate being the discount rate |
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