Gain insight into property capitalization rates and market cap rate trends with Reis. Harnessing our extensive rent comparables database and market intelligence, Reis is uniquely positioned to provide up to three different cap rates on a single transaction. Our transparent and unbiased cap rate calculations will enable you to accurately quantify cash flows and estimate the potential return on investment.
Leveraging our dynamic rent comparables database and historical market trends, Reis has created a transparent proforma analysis that projects a property’s income and expenses one year forward from the point of sale. Using a combination of property level, comp level, and submarket level data, Reis calculates the property’s net operating income (NOI). This is then divided by the sale price to arrive at an Estimated Going-in Cap Rate. Income and expense variables can be customized within the Excel version of the proforma located in Reis’s Sales Comparables report.Learn More
The 12-Month Rolling Cap Rate aggregates all of the individual going-in cap rates up to the metro level. The cap rates included are from the quarter of the date of the sale and the previous three quarters. This metro average cap rate provides a useful benchmark for understanding an individual property’s cap rate.
Reis will publish a Reported Cap Rate if it is obtained from a party directly involved in the sale. All transactions over 2 million dollars are meticulously researched by Reis’s team of sales comparables analysts. Their process includes proactively reaching out to buyers and sellers to collect and verify key information pertaining to the sale – including the cap rate.
Reis’s Transaction Analytics module offers a comprehensive perspective on metro cap rate trends. Utilize this tool to easily compare cap rates across markets or conduct a top-down analysis of the investment potential of your property. Understanding the historical performance of the metro is critical to gaging market cycles and assessing the potential return on investment for a property. Gain insight into the market’s future performance with our five-year forecast of the 12-Month Rolling Cap Rate.Learn More