commercial loan news

March 24, 2008

With The Exception Of Apartments, Cap Rates Rise

SOURCE: The Wall Street Journal

Most commercial real-estate sectors have seen their cap rates rise in recent months. The only exception to this has been apartment buildings which has stayed steady at 6.08% from January.

The cap rates for office properties located in central-business districts have risen from 5.42% to 5.96%. The cap rate is a calculation of the rental income that would be earned in the first year of ownership which is then divided by the purchase price.

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