TheCapRate.com Information

The CRE world has lost its way. Far too often financial engineering trumps real world experience as it pertains to analysis and valuation. Our premise is simple, we believe that value is a function of three things: market conditions, property fundamentals, and opportunity costs. We developed a system for quantifying those pieces and created a formula to derive a cap rate; which is applied to an estimated net operating income (NOI) to calculate a value. Is this value a best guess, of course it is, we certainly cannot begin to pretend that we know everything about everything. But, the cap rate we give you is as solid as a rock. WHAT'S THAT COMMERCIAL PROPERTY WORTH? The cap rate is tailor made to each property. The value provided is just that, an estimate, a starting point. But, the cap rate provided can be applied to the most rigorous analysis to get to a concrete value based on certain your particular hurdle rates. No more guessing at a cap rate, or an "apples to oranges" approach traditionally employed by most of us in this business, regardless of what side you are on. This property, this market, at this time, this is the cap rate to use. Are we simplifying all that goes into it, yes, but that is the beauty. Disagree with us, great, let us know. Tell us why your property deserves a higher value. Tell us why your market rocks. The more feedback we get, the better we become, and the more useful TheCapRate.com becomes to you. Specialties Commercial Real Estate Analysis, Asset Risk Management, Consultation, Advertising