Cap Rate rises -per WSJ

Capitalization rates, a calculation real-estate investors use to measure the annual return of income-producing properties, continue to rise. The average cap rate for office properties in central business districts jumped to 8.8% in December from 8.56% in November. The December number was the highest rate for that category since May 2003. Meanwhile, average cap rates for apartment buildings was 7.36% in December, up from 7.09% in November. The cap rate is rental income in the first year of ownership divided by the purchase price.