THE ULTIMATE KNOWLEDGE BASE

The BKREA Market Intelligence

Plain-English answers on zoning, air rights, development value, and selling — written for owners, not lawyers.

Glossary

Cap Rate (in the Context of User Sales)

A cap rate is how investors measure what a building is worth based on the rent it collects, but a user buyer does not care about rent because they are going to occupy the building themselves, which is why user buyers routinely pay roughly 16% more than investors would for the same property.