RealstreetEX news

The short answer is no one is absolutely sure. The CAP (capitaliztion) rate for investment properties is set by the market demand and the credit worthiness of the tenant(s)- and other things. Selecting a CAP rate (e.g. price) for an investment property is both a science and an art. CAP rate is not the IRR or a cash on cash return measure. It is a way the market has of valuing types of investment property based on market demand, quality of tenant, location, terms of the lease, and the property itself. When buying investment property, buy quality of income stream and location before you select using other measures. If you want more information on current market CAPs, tell us the type of property you want - we can help on current market CAP rates.

Posted by Dan at 10:15 AM | Permalink

September '05 came in as the highest month for investment sales with a new record of $28.2 billion. Sales of multi-family, retail, industrial and office properties are included in the $8.8 billion increase over September 2004. The previous record was $25.4 billion in December 2004. As CAP rates continue to fall, investors are searching carefully in many different US markets for investments that fit their portfolio and investment goals. It takes some looking but it is worth the search. Investment properties with upside growth location potential are there to be found in many US cities that are overlooked by some investors.

Posted by Dan at 07:57 AM | Permalink