Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,897,989,217 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

cap rate

   Also found in: Wikipedia 0.01 sec.
Capitalization Rate
The net income an asset produces in a given year divided by its purchase price. The capitalization rate is used to help determine the rate of return, or how fast an asset pays for itself and begins to make a profit. For example, if an asset cost $1,000,000 and it produces $100,000 in a given year, the capitalization rate is 10% and it will take 10 years to pay for the asset with the money it produces. However, it is important to note that the capitalization rate may change from year to year. For example, the same asset could produce $100,000 in year one but $250,000 in year two. It is informally known as the cap rate.
cap rate

See capitalization rate.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
However, the increasing cap rate transaction market from which they benefit when making new deals also hurts them on the value of their existing portfolios.
REITs hold competitive advantage over private market by Kelly, Mike / Units
Something like furnishing the condos and apartments will help the buyer get to the double-digit cap rate sooner because they can charge more in rent," Zalewski said.
Cap rates can get boost by Gomez, Rachel / The Real Deal
Theoretical Relationship between Discount Rates and Cap Rates In appraisal textbooks, the relationship between discount rates and overall capitalization rates, or cap rates, is a simple one: Discount rate = cap rate + income growth rate or [Y.
Bridging the gap between discount rate theory and investor surveys by Sonneman, Donald / Appraisal Journal
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.