The Long-run Equilibrium Relationship among Equity Capitalization Rates for Retail, Apartment, Office, and Industrial Real Estate

  • Michael Devaney
Part of the Research Issues in Real Estate book series (RIRE, volume 8)


Under the income approach, the value of a property is found by discounting the property’s expected future net cash receipts to their present value. This process of converting a property’s expected future net operating income into an estimate of current market value by discounting is referred to as capitalization.


Real Estate Cointegration Test Error Correction Model Vector Error Correction Model Capitalization Rate 
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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Michael Devaney
    • 1
  1. 1.Department of Accounting and Finance, Donald Harrison College of BusinessSoutheast Missouri State UniversityCape GirardeauUSA

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