One of the main parameters that real estate investors must know and manage is the capitalization rate, also known in English as cap rate (cap), a measurement that allows evaluating the profitability of a property acquired.

This numerical analysis, which is carried out through formulas, aims to provide information that allows the investor to make decisions based on the assets they already have.

Of interest: Solili Industrial Report 2Q 2024: Vacancy increases by 1.2 million m² compared to 2Q 2023

The parameters to be considered in the formula are two: expected returns or operating income (NOI) and market value of the property (cost of the property).

As in any industry, the factors to consider when making the decision are not usually a pair, therefore consider these three key characteristics; the location of the property, type of property and the condition of the property.

Check here: Solili Offices Report 2Q 2024: Office leasing reports an annual increase of 17%

Measuring the capitalization rate allows you to optimize the decision-making process, however it should not be the only formula taken into account to be successful in real estate investments. 

In Solili you can check available buildings in: Ciudad Juarez, Matamoros, Reynosa.

Original Note.