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Updated over 4 years ago,

Derek Shearin's profile image
Derek Shearin's profile image
Derek Shearin
  • from Chapel Hill, North Carolina
  • Member since Mar 14, 2017
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Derek Shearin's profile image
Derek Shearin's profile image
Derek Shearin
  • from Chapel Hill, North Carolina
  • Member since Mar 14, 2017
Connect
Derek Shearin
  • Chapel Hill, NC
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Commercial Real Estate Investing

Cap Rate NNN question

Derek Shearin
  • Chapel Hill, NC
Posted

I happened to find a property that the owners are offering a 20 year NNN Leaseback "Sale". They list the Cap Rate at 7.88%. On an apartment building, I understand that Cap Rates are calculated based on Net Operating Income...(Gross income minus Operating expenses). For a NNN property, what would be the "operating expense"? Is it just management fees?

Mostly just curious.

Derek

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