Real Estate Glossary

Capitalization Rate

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Term Main definition
Capitalization Rate

The rate that is considered a reasonable return on investment (on the basis of both the investor's alternative investment possibilities and the risk of investment). Used to determine and value real property through the capitalization process. Also called "Free and clear return." See Also: Capitalization

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San Francisco Property Management

47 Kearny Street
San Francisco, CA 94108


Phone: 415-981-5780
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California DRE #01183885