On Thursday, February 20, 2014, Mr. Peter F. Korpacz MAI, CRE & FRICS spoke before the
local Miami Chapter of the ASA (American Society of Appraisers) in Coral Gables. Philip G. Spool,
ASA, introduced the speaker.
Mr. Korpacz is the founder and original publisher of the quarterly Korpacz Real Estate Investor Survey®, one of the industry’s standard sources of real estate capital market trends, including capitalization and discount rates and other cash flow forecast assumptions of active real estate investors.
His company is Korpacz Realty Advisors of Mount Airy, Maryland.
His company is Korpacz Realty Advisors of Mount Airy, Maryland.
Guests included Pedro Gomez, the former Miami-Dade
County Property Appraiser. Many local
appraisers, Realtors, "tax agents", and tax magistrates attended the sold out dinner meeting.
Korpacz spoke about the “elusive cap rate” and factors
that go into this index. He defined a
cap rate as “any rate that converts income into value” and covered the
following topics: cap rate vs. the discount rate, contract rent vs. market rent
and the effect on cap rates, sources of obtaining cap rates, updating of older
sales with a new rates in what he referred to as “re-fried cap rates”, and cap
rates as they relate to tax assessments.
Korpacz stressed throughout his presentation for appraisers
to use “methodology that reflects market activity” using published cap rate information
together with local comparable sale data and not to rely solely on published
data, such as his nationally recognized cap rate “investor survey”.
Britt J. Rosen, CCIM with Peter F. Korpacz MAI, CRE, FRICS at Miami ASA meeting in Coral Gables, FL. |