The Wall Street Journal-20080130-In Brief

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In Brief

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Some Cap Rates Inch Up

Capitalization rates, which reached historic lows last year, have started to inch up for apartment buildings and office properties. The capitalization rate is a calculation of rental income in the first year of ownership, divided by the purchase price. In December, average cap rates for apartment buildings were 6.1%, up slightly from 6.09% in November. For central-business-district office properties, average cap rates rose to 5.87% in December, up from 5.76% in November.