Capitalization Rate is determined by subtracting annual expenses from annual income to determine Net Income, and dividing by the list price.It is the rate at which the net income pays off the purchase price per year.
Therefore, it is property specific, not by zip code.
Edmund, I work in this zip code. What type of property does your question relate to? Multifamily buildings in this area typically trade with cap rates in the range of 3-4%.
LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.
Ask a question to get advice from brokers, investors, professionals and local experts.
Answer questions to raise your visibility as a trusted advisor and build new relationships.