Cap rates are one of the most powerful tools in commercial real estate—but most new investors only think they understand them. In this video, we break down what a cap rate really is, how it’s calculated, and how to use it to analyze deals, assess risk, and spot undervalued properties.
You’ll learn how different markets, asset types, and tenant quality impact cap rates—and when a low cap rate might be better than a high one. Whether you’re looking for long-term cash flow, appreciation, or both, mastering cap rates is essential to making smarter real estate investments.
In this video, you’ll learn:
00:00 – What Is a Cap Rate?
00:43 – High vs. Low Cap Rates Explained
02:35 – How to Actually Use Cap Rates in CRE Investing
Access our comprehensive blog post: How to Use Cap Rates to Make Informed Commercial Real Estate Decisions
How to Use Cap Rates for Better Real Estate Decisions
Have you ever looked at a commercial property and wondered, “Is this a good deal?” Cap rates – short for capitalization rates – are one of the most powerful tools investors use to answer that question.
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