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)

Abstract

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.

Keywords

Income Autocorrelation Volatility Rium 

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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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