Quick and Reasonable commercial property valuation.

This is unofficial way of valuation but very fair.

If prime is 4.25% for example, borrower ( buyer ) has to make money after paying interest on borrowed money and maitenance. So, for

A class building, CAP rate has to be Prime plus 2% = 6.25%

B class building, CAP rate has to be Prime plus 3% = 7.25%.

C class building, CAP rate has to be Prime plus 4% = 8.25%

D class building, CAP rate has to be Prime plus 5% = 9.25%.