CAP rates shouldn’t be used for single family homes – investors should use sold comparables to determine the value of these properties. * Remember that the CAP rate is only as good as the data ...

The formula for calculating the cap rate is: Cap rate = Net operating income / Market value. Warning! GuruFocus has detected 7 Warning Signs with SPG. Click here to check it out.

“Except for a brief hiatus during the Great Recession (2007 to 2009) when property prices declined and real estate investment risk was high, the national average CRE cap rate has consistently ...