Cap Rate Basics Skills Tests

Cap Rate Basics — Beginner

Foundations of capitalization rates: NOI, value relationship, direct capitalization, market caps, and how investors read risk through cap rates. Commercial real estate concepts; not legal, tax, or investment advice.

Cap Rate Basics — Intermediate

Going-in and terminal caps, trailing versus forward NOI, reversion, cap compression, lease structures, and building a defensible market cap from comps. Commercial analysis; not legal, tax, or investment advice.

Cap Rate Basics — Advanced

Economic versus nominal caps, below-market rent, yield on cost, implicit caps from DCF, comp distortion, sensitivity, and reconciling cap rate with total return metrics. Advanced commercial underwriting; not legal, tax, or investment advice.