Any interest in real estate capable of generating income is typically valued by direct capitalization. Although capitalization rates can be estimated using various methods, the technique used will depend on the quantity and quality of the data available. Deriving capitalization rates from comparable sales is the preferred technique when sufficient sales data of similar comparable properties is available. The Direct Capitalization Method requires an appropriate estimate of net operating income which requires an appropriate estimate of operating expenses. The presenters will focus on the estimate of expenses and deriving an appropriate capitalization rate using the Direct Capitalization methodology. Practical examples will be covered.