How to Calculate and Use a Cap Rate

The capitalization rate, or cap rate, is one of the first numbers any commercial real estate investor looks at. It tells you, in a single percentage, what yield a property is producing at its current price — before any financing kicks in. That makes it fast to calculate, easy to compare across deals, and genuinely…

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15 Commercial Real Estate Terms You Should Know

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There’s no escaping it. Every industry is filled with jargon and commercial real estate is no exception. Whether you’re an aspiring real estate agent or just curious about the industry, we’ve selected the most common commercial real estate terms you’re likely to encounter: 1. Adjustable Rate Mortgage (ARM) When you take out a mortgage, you…

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