Cap Rate
Calculator
Calculate cap rates, property values, or required NOI for your commercial real estate investment analysis.
Annual Net Operating Income
NYC Market Cap Rates (2024-2025)
*Cap rates vary based on location, building quality, tenant credit, and lease terms. Contact us for property-specific analysis.
Cap Rate FAQ
What is a cap rate?
Capitalization rate (cap rate) measures the rate of return on a real estate investment property. It's calculated by dividing the Net Operating Income (NOI) by the property's current market value or purchase price. A higher cap rate typically indicates higher risk and higher potential returns.
What is a good cap rate for NYC?
In NYC, "good" cap rates vary by asset class and location. Manhattan multifamily typically trades at 4.5-5.5%, while office buildings range from 5-7%. Lower cap rates indicate more stable, lower-risk investments. Post-2022, cap rates have expanded 100-150 basis points due to higher interest rates.
How does cap rate affect property value?
Cap rate and property value are inversely related. A lower cap rate means higher value (investors will pay more for stable income), while a higher cap rate means lower value (investors require more return for perceived risk). A 1% change in cap rate can significantly impact value.