Any interest in real estate that is capable of generating income can be valued using the direct capitalization approach. This requires an appropriate derivation of the capitalization rate. Depending on the quantity and quality of available data, there are various techniques used.
This webinar will cover the challenges assessors and valuators face in deriving capitalization rates in the application of the direct capitalization methodology. Emphasis will be given to derivation of the rates from comparable sales. As well, data requirements and practical application of the methodology will be discussed.