what is the cap rate for industrial property in post falls idaho?

In Selling Property - Asked by Frank H. - Feb 4, 2012
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Answer(s)

Jeff B.
Broker/Agent
Nipomo, CA

The cap rate (capitalization rate) is the annual net operating income (gross income minus all expenses) of a particular property divided by its cost (or value). For example, if the annual net operating income of a property is $150,000, and its value is $3,000,000, the resulting cap rate will be 5%. So, to determine a cap rate, one needs to know both the annual net operating income and the value of comparable income properties in the surrounding neighborhood or region. The more comparable the buildings in terms of use, size, location, construction type, date of sale, etc., the more reliable the resulting cap rate. On the other hand, a buyer may have his own minimum cap rate in mind. For example, if a buyer will not consider a cap rate of less than 6%, then in his eyes a property with a net operating income of $150,000 has a maximum value of $2,500,000.

Feb 17, 2012
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Chris S.
Broker/Agent
Coeur D'alene, ID

All depends. I am selling property in CDA, Post Falls, Sandpoint, Spokane, etc.
Spokane recently sold an investment grade property at 7%
Sandpoint recently sold an investment grade at 8.25%
Nampa sold recently at 8%
Post Falls recently sold at 12%
Just listed
Post Falls at 9%
Sandpoint at 8%
Hayden at 6%
Caldwell at 6%
Primary factors
Tenant credit worthiness
Lease structure
Lease term
Lease gaurantors
Physical attributes of the property
Location
Competition

Aug 1, 2012
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