INCOME PROPERTY

CAP RATE

If you're considering real estate investment in the U.S., you might look at apartment buildings, office buildings, shopping centers, and other income-producing properties for their rental returns.
In U.S. real estate, investors look closely at the CAP RATE, which is calculated by dividing Net Operating Income (Scheduled Gross Income minus expenses) by the property's Value (market price).

CAP RATE tends to be fairly consistent within a given area — the higher the number, the higher the potential return. Areas with more risk often offer higher returns, while safer, more desirable areas tend to come with lower but more stable returns. Whether you prioritize cash flow or long-term appreciation will shape which area and property type is right for you.

GRM

Another useful metric is the GRM (Gross Rent Multiplier) — a measure of how many times the annual rental income the market price represents. You can calculate it by dividing the market price by the property's annual rental income.

Like CAP RATE, GRM also tends to be fairly consistent within a given area, and it helps you understand how a listing price compares to its income potential. A lower GRM generally means a stronger rental return relative to the purchase price.

We recommend looking for a well-balanced property. Get in touch to learn more.

View Commercial Listings

UPGRADING

Not only investors, but many homeowners have experienced how renovating an older property can upgrade and increase its value.
By incorporating current styles and trends, you can transform both the functionality and the look of a property.

Learn More