Property managers can do nothing to increase property cap rates since cap rates are determined by...
Property managers can do nothing to increase property cap rates since cap rates are determined by market forces. True or False
The risk associated with a property’s net income will affect its cap rate. True or False
The capitalization rate, “cap rate” measures the annual net operating income of a commercial property relative to its market value. True or False
Homework Answers
Ans
1 false. They determine supply and thus affect market forces
2 True. Those having greater risk tend to have greater cap value
3 True. This is definition of market cap
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Property managers can do nothing to increase property cap rates
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