Definitions for "cap rate"
The discount rate used to determine the present value of a stream of future...
Same as capitalization rate.
One of the most popular valuation formulas for commercial real estate, where net operating income (NOI) divided by the sales price equals the cap rate (capitalization rate). Usually, the higher the cap rate the higher the property risk (i.e. leases coming due, location, tenant credit).
Keywords:  appropriate, tasks, tool, job, right
a tool and, as with all tasks, the appropriate tool must be used to do the job right
Keywords:  fair, best, simple, method, determining
a simple method for determining fair market value - but not the best method