Capitalization Rate
Definition
- The estimated percentage rate of return that a property will produce on the owner's investment.
Synonyms
estimated value, rate of return
Related Terms and Acronyms
- Commercial Property — Definition,
- A parcel in a district zoned for business.
- Internal Rate of Return (IRR) — Acronym, Important,
- That rate at which the present worth of all present and future investment costs equals the present worth of all present and future investment benefits.
- Rate — Definition,
- Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
- 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.
