Charlie Johnson breaks down how mortgage pros and buyers use the income approach to value commercial properties.

– Formula: Net Operating Income ÷ Cap Rate

– Example: $2M retail strip earning $150K with a 7.5% cap rate– 2025: Industrial cap rates = stable 6–8%, office = higher, more risk

📌 Mortgage pros: Verify income data—leases, expenses, and realistic rents.

📌 Buyers: Compare cap rates to local market averages to catch inflated prices.

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