Real estate capitalization rates are a much observed indicator of property value and their movement over time can have profound effects on investor returns. 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 deeper 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. More importantly, the webinar will address how these component parts are expected to move in the future once the economic turmoil of today begins to subside. Participants will be in a better position to assess whether cap rates are going to move back to the rates observed before the turmoil or whether cap rates will rise and if so by how much.
Who Should Order:
This webinar provides fundamental information useful for the valuation of real estate investments and will appeal to developers, lenders, investors, accountants, and CFO's.
*Please Note: Hard copies of the presentation are not available with this recording.
Program Date:
November 17, 2008
- The learning objectives of this Webinar are:
* Understand the component parts of real estate capitalization rates.
* Know 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.
