Tag Archives: cap rates

Game of Homes And New York City Affordable Housing!

shame photo

Over the summer New York City passed a law that focuses increased attention on protecting tenants in buildings that include a large percentage of rent-regulated apartments! Specifically when that building changes hands at an inflated price, suggesting that an endgame of the new buyer might be to get these tenants to move out! In New York […]

Commercial Real Estate: Is The ‘Smart Money’ A Buyer Or A Seller?

commercial real estate,Sam Zell

Summary: At the racetrack the ‘smart money’ will typically show itself just before post-time which allows the astute punter an opportunity to get onboard with the bet. Even then there are of course no guarantees. In real estate, very often the average investor won’t know what the smart money is doing until after-the-fact when it is already too […]

US CMBS Delinquency Data For November (Infographic)

CMBS,commercial real estate,

As we approach the first Federal Reserve induced interest rate increase in about nine years, the impact on CMBS down the road will definitely bear watching! Given the way that the underwriting of commercial mortgage loans is done and the impact that an increase in rates might have on borrower credit quality, debt service coverage ratios […]

What Is A Cap Rate?

Unlike the way that a value or asking price for residential real estate is determined, the worth of a commercial property is based primarily off of one thing…NET OPERATING INCOME! Residential Real Estate 101 Residential property will generally be valued using a comparison to other properties in the general vicinity. Recent closed sales that occurred nearby the […]

Commercial Real Estate and the Cap Rate Conundrum!

Cap Rates: What they are and where they are heading! For commercial real estate the term capitalization rate, better known as the cap rate, is one of the key measures that can define the attractiveness of an income producing property! The cap rate is simply calculated by taking the net operating income of a building, […]