Viewing articles for the category Valuation
In the real estate investing world, the use of leverage when purchasing assets is a virtual certainty.
Lease Up Schedule Defined
If you’re in the commercial real estate industry, then you’ve certainly come across the term cap rate. While cap rates are generally reserved for the financial side of the industry, it’s important to have a basic understanding of what they are and how to calculate them no matter your position. Cap rates are the gateway to the current state of capital markets as well as the future growth outlook.
In commercial real estate valuation, there are a number of methods one can employ to get to a market value for a particular asset. Some of these techniques are more accurate and involved while others are more useful for a quick gut check. Utilizing a Gross Rent Multiplier (GRM) is one way to get at a quick “back of the envelope” value for a commercial real estate asset.