Required Rates of Return and Capitalization Rates Individual Course Module (AREF2)

Students will review the valuation methodologies used to value an income producing property and gain an understanding of the pros and cons of using direct capitalization versus discounted cash flow and vice versa. This session will delve into the theory behind direct capitalization using cap rates and discuss how CAPEX is handled in determining cash flows, cap rates and returns. We’ll identify the components of a cap rate and how these components determine the direction of the cap rates and real estate values. In addition, attendees will discern the components of the expected total return on a real estate investment and view some of the industry data sources for cap rates and required returns.

If you would like to purchase the full course (all eight modules) instead of this individual module, please visit the full Advanced Real Estate Finance Course.

Individual Course Module Tuition and Registration

Payment for a NAIOP on-demand course entitles access for one person only to the course and all materials.

Course Tuition

Member TypeUSDCAD
Member$39$52
Nonmember$79$106
Developing Leader$39$52
Student Member$39$52
Student Nonmember$79$106


How to Register

  • Register online: Click on the green Register button at the top of the page. You will need to log in or create a free account in order to see the Register button.
  • Mail: Send check payments to: NAIOP, CL500060, PO Box 5007, Merrifield, VA 22116-5007
  • Register over the phone/questions: 800-666-6780
Note* - You have 60 days to complete this course.

Confirmation

All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, mail, or phone, a receipt must be requested by contacting education@naiop.org.

Login instructions to access the on-demand course are sent under separate cover from NAIOP Learning. If you do not received the login instructions, please check your spam folder. If the login email is still not there, please contact the NAIOP Education Department.

Cancellation Policy

No refunds will be issued.

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Required Rates of Return and Capitalization Rates Class Recording
Open to view video.
Open to view video. Attendees will review the valuation methodologies used to value an income producing property and gain an understanding of the pros and cons of using direct capitalization versus discounted cash flow and vice versa. This session will delve into the theory behind direct capitalization using cap rates and discuss how CAPEX is handled in determining cash flows, cap rates and returns. We’ll identify the components of a cap rate and how these components determine the direction of the cap rates and real estate values. In addition, attendees will discern the components of the expected total return on a real estate investment and view some of the industry data sources for cap rates and required returns.
Required Rates of Return and Capitalization Rates Presentation
Open to download resource.
Open to download resource.
Required Rates of Return and Capitalization Rates Quiz
4 Questions  |  3 attempts  |  4/4 points to pass
4 Questions  |  3 attempts  |  4/4 points to pass This test is not required. You must get 4 out of 4 questions correct in order to pass the test. You have three attempts to pass the test.
Required Rates of Return and Capitalization Rates Module Evaluation
7 Questions
7 Questions Please fill out this evaluation in order to get credit for the course.
Required Rates of Return and Capitalization Rates Transcript
2.00 PDH, AIA Learning Units credits  |  Certificate available
2.00 PDH, AIA Learning Units credits  |  Certificate available