The direct capitalization method can be used to quickly value a building. You are evaluating a property that produces gross rent of

$524,000

per year with an expected NOI of

$247,000

per year. Similar properties have traded with a cap rate of

4.5%

and and GIM of 8.5 . What is the value of the subject property based on the direct capitalization method?

The direct capitalization method can be used to quickly value a building. You are evaluating a property that produces gross rent of $524,000 per year with an expected NOI of $247,000 per year. Similar properties have traded with a cap rate of 4.5% and and a GIM of 8.5. What is the value of the subject property based on the direct capitalization method