Capitalization Rates
For Offices Sink to Low

Capitalization rates generally have marched downward since 2001, but they hiccupped for apartments while dropping to a low for office properties.

The capitalization rate is a calculation of rental income in the first year of ownership, divided by the purchase price.

After increasing in July to 6.26%, cap rates for apartments dropped again and ended September at 6.09%.

For central-business-district office properties, cap rates hit a low in September of 5.54%.

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