Cap Rates are an extremely important factor in the buying and selling of commercial real estate. If you’re investing, this article will give you a strong grasp on this concept! And check out our commercial real estate cap rate calculator, too.
How is Commercial Real Estate Valued? Here's the Answer
When determining the value of residential real estate, investors have a pretty easy time.
You simply log into the MLS or check Zillow for comparable properties in the area and utilize the price per square foot to determine the value of the asset you’re reviewing.
Commercial real estate, on the other hand, isn’t quite as simple.