Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

Used in

Source

Topic

Capitalization (Cap) Rate

The rate at which net operating income is discounted to determine the value of a property; calculated as the net operating income divided by the sales price or value of a property expressed as a percentage.

Source: NCREIF | Date: 02 September 2025 | ID: D0972 | Version: 1