In this video an overview of the Reis Cap Rates methodology is presented by Dr. Victor Calanog, its Chief Economist. Cap rates are a measure of a property’s investment potential, independent of a specific buyer. Investors, lenders, and appraisers use cap rates by Reis and others to estimate the appropriate purchase price for different types of income producing properties, including retail, industrial, office, and multifamily properties.
Reis notes that it offers three different cap rates per property in its Sales Comps module:
– An Estimate of Going-in Cap Rate
– 12-Month Rolling/Trailing Metro Cap Rate
– Reported Cap Rate