![noi calculation for commercial strip center noi calculation for commercial strip center](http://cdn.cnn.com/cnnnext/dam/assets/111130041611-javaheri-landfill-solar-methane-00023115-horizontal-large-gallery.jpg)
If someone needs to sell fast, maybe they advertise the above property for $909,000 as an 11 CAP.
![noi calculation for commercial strip center noi calculation for commercial strip center](https://aipcommercialrealestate.com/wp-content/uploads/2021/03/6-1024x500.jpg)
When a property is for sale, the CAP is given based on the asking price and income.
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CAP rates can be used to trick people into thinking a property is a better deal than it is. It is also vital that you know what CAP rates are in your area. If you are involved in commercial real estate, it is vital that you understand CAP rates and how they work. The CAP rate will not give you the returns when you have loans on properties, but it will give you an idea of what a property is worth. The cap rate is a measure of what the returns will be assuming you pay cash for a property. CAP stands for capitalization and is often used to determine the value of income-producing real estate. If you have researched investment properties, you have probably heard the term CAP rate.