Real estate capitalization rates are a much observed indicator of property value and their movement over time can have profound effects on investor returns. Nevertheless, they are not often well understood by some real estate professionals. And, while real estate investors typically understand how cap rates are used to determine the value of a property, often there is less understanding as to how and why cap rates change.
To gain a more comprehensive understanding of cap rates and their movement over time, it is necessary to examine the component parts that make up a cap rate. Interest rates, expected inflation, risk premiums, and growth in property cash flows are all factors that determine both current and future cap rates. How these component parts change over time dictates how the overall cap rate will respond.
In this webinar, the components of the cap rate will be revealed and discussed with an explanation of how cap rates have moved in the past, and a view to how they might move going forward.
- A comprehensive understanding of the component parts of real estate capitalization rates and how they are used to determine value.
- Learn how to access market information to determine the current level of these component parts and trends in their movement over time in order to forecast the direction of cap rates.
- Be able to use the information provided in the webinar to make more informed valuation and investment decisions.
Who Should Attend:
Real Estate Developers
Real Estate Lenders
Real Estate Investors
January 15, 2013 1:30 PM Eastern