Cap Rates

How do interest rates affect commercial property values?

Financing costs change the yield buyers require. Same NOI at a higher cap rate is a lower indicated value. This is a property-valuation story, not a tenant lease NPV.

2026-09-17 · 16 min read

[ VALUATION ] [ Interest Rates ] [ Cap Rates ] [ Commercial Real Estate ]

How is cap rate calculated for a commercial building?

Cap rate is NOI divided by value or price. Name the NOI, name the price, and do not treat a tenant occupancy-cost number as a property yield.

2026-09-20 · 11 min

[ VALUATION ] [ Cap Rates ] [ Valuation ] [ NOI ]