Image for Commercial Property Measures

Commercial Property Measures

Commercial property measures are tools used to evaluate the value, performance, and risk of business-real estate investments. They include metrics like Net Operating Income (NOI), which shows the property's profit after expenses; Capitalization Rate (Cap Rate), indicating return potential; and Occupancy Rate, reflecting how much of the property is leased. These measures help investors and managers assess whether a property is a sound investment, monitor financial health, and compare different properties effectively. They provide a standardized way to understand the value and profitability of commercial real estate assets.