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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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