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                                         Capitalization Rate Graphic 
 
 
 
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    Capitalization Rate Graphic
 
                                                              (See Graph Below)
      
  The Capitalization Rate graph projects the Cap Rate into the future based on the investor's assumptions for income, expense and appreciation growth rates.  The Capitalization Rate graphic is derived from the Ratio Analysis report.  Note:  The Capitalization Rate graphic can be created in a line, step or bar format. To learn more about the cap rate, click on  Capitalization Rate  You will be taken to our Advanced Topics section.

If the cap rate drifts more than a point and a half, you might want to take a look at your growth rate assumptions for appreciation and income.  If you assume that the average appreciation growth rate is going to increase at a high rate, 10% for example, the property income will need to grow at a high rate to support the increased sales price. 

Note:  The Capitalization Rate graphic can be displayed and printed in 2D Line, bar and step format and in 3D bar and step format.                        

 
 
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