Cap Rates, NOI and Price Per Square Foot: How Commercial Property Is Valued in Florida

A cap rate is a shorthand for one sale, and it depends entirely on how the net operating income behind it was built. This post defines NOI, cap rates, price per square foot, DSCR and LTV, explains the three appraisal approaches and the Florida tax reset after a sale, and walks a hypothetical building through every step of the arithmetic. Local figures are brokerage estimates and are labeled as such.