Vacancy & Cap Rates

[Sandy S Harris]

Quick question BP'ers,

I'm spending lots of time analyzing properties these days, but I'm wondering where do I go to get the cap rate and vacancy rate on any given area? It isn't always given in a listing, along with lots of other pertinent info, for that matter.

Thanks!

[Will Barnard]

Originally posted by Bryan Hancock:

All that really matters is YOUR capitalization rate that is a blending of your debt constant and required yield on your equity in whatever proportions they will be used to capitalize the purchase.

Actually, cap rates have nothing to do with the debt service, they are determined by the net operating income and the purchase price.

As to vacancy rates for any area, you need to get that info from studies performed on that area, Bryan mentioned a good source from Marcus and M. Property managers in that area who manage 100+ doors would also have some data for you.