Cap rate or capitalization rate or just cap is the ratio of annual rental income of the property over the purchase price. NAI Pleasant Valley is the Northern Ohio office of NAI Global, the leading global commercial real estate brokerage firm. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world. Cybersecure building systems that allow for the security, monitoring, and operational efficiency of your commercial real estate properties.
Advising on the benefits from different office scenarios can provide clients with precise up to date information to help in their decision making process. In-depth local knowledge is a critical component to navigating the dynamic commercial real estate market.
If it happens to have a weak guaranty, (e.g. from a small, private company), you will get double benefits: on time rent payment and high return. The returns of a commercial property investment come from 4 sources: appreciation, cash flow, i.e. cap rate, depreciation (tax writeoffs), and principal reduction from your mortgage payments.
The National Council of Real Estate Investment Fiduciaries (NCREIF) has published the first quarter 2019 (1Q19) results for the NCREIF Property Index (NPI). The result of this difficulty with selling commercial property is that there are many owners of commercial property who are willing to sell to a qualified buyer, but are simply not willing to go through the selling process.
The problem or barrier for most real estate investors buying these properties is the down payment required to acquire them. SVN Florida, with properties located across the Sunshine State, sells and leases all commercial real estate product types. There are many income producing commercial real estate properties that are being offered below market that are great investment opportunities.