Posted by Mark Williams on August 29, 2003 at 08:04:23:
Wendy:
Suggest you ask a licensed COMMERCIAL appraiser in the area you’re interested in? They’re most likely to know.
Mark
capitalization rate - Posted by wendy
Posted by wendy on August 29, 2003 at 07:58:50:
Does anyone know the capitalization rate in West New York, NEW JERSEY ?
Thank you for your help.
Re: capitalization rate - Posted by ray@lcorn
Posted by ray@lcorn on August 29, 2003 at 11:00:32:
Wendy,
There is no such thing as a cap rate for an area, any area. Cap rates are specific measures of specific properties using specific data. There are average cap rate for specific property types, but those are broad measures and useful on the same level as a rule of thumb. Kind of like dressing for Alaska with only the knowledge that the average temperature in Anchorage is 55 degrees. Without the specific knowledge of the conditions (e.g. the season, where in Alaska, etc.), the average is only a broad indicator.
Read my article about how to calculate your own capitalization rate. It’s in the articles section of the website, and the direct URL is http://www.creonline.com/articles/art-216.html
ray