Capitalization rates or “cap rates” are the most popular way to measure a #commercial #RealEstate investment’s #profitability & return potential.
A #CapRate is usually determined using the net income the property is expected to generate. You calculate it by dividing the net operating income by the property asset value. The resulting cap rate is expressed as %.
#CushmanWakefield suggested to #Birney that the cap rate for midtown should be mid-4s. The #TrumpOrg ended up using a cap rate of 2.67%.
A common myth tells us that ostriches bury their heads in the sand when faced with danger. While not true, the phrase “burying your head in the sand” has become a popular idiom to describe an individual who ignores the existence of a problem with the hope that it will just go away.