CASE STUDY #2 Calculate a Market Capitalization Rate Calculate a Market Capitalization Rate Summarized below is the financial data of several other similar income properties that recently sold in the same area. Net Operating Income Sales Price CAP Rate Comparables 10.70 75,000 700,000 1002 Main St 9.40 65,000 690,000 6054 Weiss St. 9245 Church 9.00 65,000 725,000 PI. 509 Corcoran 11.30 80,000 710,000 St. 4560 Wall Ave. 10.00 750,000 75,000 To calculate the Market CAP Rate, add the individual CAP rate figures in the table above and divide by five, the number of properties. 50.4/5 10.08 The average Market CAP Rate determined by the above data equals 10.08% However, one can adjust up or down to better fit the subject property and its condition, location, etc. differences. Market CAP Rate= % CASE STUDY #2 Calculate a Market Capitalization Rate Calculate a Market Capitalization Rate Summarized below is the financial data of several other similar income properties that recently sold in the same area. Net Operating Income Sales Price CAP Rate Comparables 10.70 75,000 700,000 1002 Main St 9.40 65,000 690,000 6054 Weiss St. 9245 Church 9.00 65,000 725,000 PI. 509 Corcoran 11.30 80,000 710,000 St. 4560 Wall Ave. 10.00 750,000 75,000 To calculate the Market CAP Rate, add the individual CAP rate figures in the table above and divide by five, the number of properties. 50.4/5 10.08 The average Market CAP Rate determined by the above data equals 10.08% However, one can adjust up or down to better fit the subject property and its condition, location, etc. differences. Market CAP Rate= %