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What Is Cap Rate in Real Estate? A Simple Guide for Commercial Property Investors
16 Dec

What Is Cap Rate in Real Estate? A Simple Guide for Commercial Property Investors

by Arjun Mehta Dec 16 2025 0 Commercial Property

Cap rate is the key metric for evaluating commercial property investments. It shows your annual return based on net income and purchase price-no loan needed. Learn how to calculate it, what a good rate is, and how to avoid common mistakes.

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