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Calculating Value, Income, and Rate of Return for Banning CA Commercial Property

By
Real Estate Broker/Owner with Garrigus Real Estate CalBRE# 01844442/01844441

BANNING CA COMMERCIAL REAL ESTATE

Calculating the value, income, and rate of return on Banning CA Commercial real estate investments need not be complicated. Here are three monetary aspects of an investment that share a mathematical relationship. They can help you determine a tangible return on a Banning CA investment like commercial Banning CA retail, Banning CA office, Banning CA industrial and Banning CA multifamily real estate:

  • Value: The cost or market value of a Banning CA property.
  • Income: The estimated annual income the Banning CA property can produce.
  • Rate of Return: An annual percentage return on the Banning investment.

To calculate the value of a Banning CA income property, simply divide the annual income by the rate of return, or:

VALUE = INCOME/RATE OF RETURN

To calculate the income of a Banning CA income property, simply multiply the rate of return by the market value, or:

INCOME = RATE x VALUE

To calculate the rate of return of a Banning CA income property, simply divide the income by the market value, or:

RATE OF RETURN = INCOME/VALUE

Keep in mind the rate of return should not be confused with the Capitalization Rate, also known as the Cap Rate.

Posted by

Todd & Devona Garrigus

Broker / REALTORS®

951.490.3698 | Direct for Todd
951.490.3683 | Direct for Devona

www.GarrigusRealEstate.com
CalBRE# 01844442/01844441