The terminal capitalization rate, or exit rate, is used to estimate the resale value of a property at the end of the holding period. The going-in cap rate is the property's projected first-year ...

The terminal capitalization rate is the rate used to estimate the resale value of a property at the end of the holding period. more. Leasehold Improvement: Definition, Accounting, and Examples.

This included the terminal cap rate—the cap rate the building would trade at if StarPoint were to sell it within the next five years. And that number was?

The discount rate is determined from the first part of the cap rate formula as the risk-free rate plus the risk premium and in the example above, would be 2.0% + 7.0% or 9.0%.