In this video produced by Adam Gower of Gower Crowd, you will learn about the all-important concept of the “Cap Rate,” short for “capitalization rate.” Adam uses one of our listings, 3451 Benning, to illustrate this concept.
The cap rate can drive the value of a building. The way that it’s calculated is by taking the net operating income and dividing that by the cost of the building. As cap rates go down, prices go up.
Find out more about the nuances of this metric, see how the issuer refers to it in his offering, and well see recent trends. Just press play!