What Is Overall Capitalization Rate?

The overall capitalization rate (OAR), sometimes written R₀, is the appraisal-standard term for the cap rate applied to a property's total value — as opposed to a rate applied to just one component, like the land or the building alone.

Most useful for: Commercial Investor · Appraiser
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Overall Capitalization Rate
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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