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Definition Of:

capitalization rate

Sean Woo's Real Estate DictionarySean Woo's Real Estate Dictionary
the ratio of income-to-value.
Note: the capitalization rate for real estate assets is the ratio of rent-to-price, or ratio of rent to development cost.
Note: cap rate is like the current return on the investment(cap rate=current net income/property value). While OCC(opportunity cost of capital) is the expected total return on the investment in the property(OCC=cap rate+growth rate). That is, current return rate+future growth rate=total return rate


 

Sean Woo's Real Estate Dictionary INDEX:

List of Terms: Terms beginning with "A", Page 1

A B C D E F G H I J K L M N O P Q R S T U V W Z
1 2 3 4

A: Page 1 of 4.

accessibility varia...accounting liquidit...accounting value
accounts payable
accounts receivable
accrued expenses
accrued taxes
accrued wages
acquisition
activity-based cost...

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