Reis Indexed Metro Apt Cap Rate

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Reis Indexed Metro Apt Cap Rate

Definition:
Cap rates are calculated by Reis based on conditions in each metro and are updated quarterly. Cap rates are modeled as a function of risk-free interest rates, metro level in-place rent growth expectations, current construction activity, and by running measures of volatility in rents and metro level economic and demographic factors. Together, these measures are proxies for capital conditions, income expectations, and risk. The model was developed using data from actual transactions.