REM 500 Chapter Notes - Chapter 10: Earnings Before Interest And Taxes, Net Lease, Capitalization Rate
19 Oct 2017
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Rem500 - chapter 10 - real estate finance: background. The relation between space markets and the capital markets. Net operating income (noi) property revenue stream after operating expenses. Cap rate a measure of the property"s growth prospects and perceived risk relative to other investment opportunities. The ability of a property to generate an income stream depends on the demand for space, competing properties, and locational factors that include everything form the quality of local labour force to the price of electricity. Expected rate of return: a fundamental underpinning of capital markets. The more in ation investors expect, the higher the require return on this risk-free instrument. Real estate capital markets have been described as having four quadrants: private debt, public debt, private equity and public equity public sources of equity: Ow of public equity capital into commercial real estate comes from three major sources:
