Capitalization

Definition

• A way to estimate the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.

Synonyms
rate of return, estimated value

Related Terms and Acronyms

• Commercial Property — Definition,
  • A parcel in a district zoned for business.
• Rate of Return (RR, ROR) — Acronym, Important,
  • The profit an investment generates, expressed as equity divided by cash flow.
• Return on Investment (ROI) — Acronym, Very Important,
  • The profit an investment generates, expressed as equity divided by cash flow.