Question: What does the term capitalization mean? What is a cap rate? How is it used in the commercial real estate market? If a building has

What does the term capitalization mean? What is a cap rate? How is it used in the commercial real estate market? If a building has NOI (net operating income) of $100,000 and the cap rate for this type of income property is 5%, what is the value estimate for this property?

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