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Valuation in Commercial Real Estate is driven by income, and a key component to understanding the relationship between income and value is the CAP rate.  This article is designed to give a basic understanding of the basic fundamentals of the CAP rate, how it is calculated, how it is set, what affects it, and how it effects the valuation of real estate.  


  • “... when everyone lese told us it could not be done... Shawn and Gary worked hard to make sure every possible lender saw the deal and had a full understanding of the property and borrower...”

    Brian Baker
    Property Manager, SD County Medical Buildings, Inc.

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    Preston Caffrey
    President of Ocean Equity Solutions, Inc.

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