01Price the income
Direct capitalisation valuator
The cap-rate band for this asset class in this market, and what it makes the building worth — on one screen. Nothing you type leaves your browser.
Your building
Indicated value
$8,347,826
$480,000 NOI capitalised at 5.75% — $199 per sf.
Implied cap at your price
5.85%
Spread to band mid
+130 bps
Value gap vs band mid
-$2,349,451
At $8,200,000 you are buying a 5.85% cap — wider than the top of the Toronto industrial band (4.95%), so either the income is at risk or the asset is genuinely cheap.
Value at the curated Toronto industrial band
Low 4.20%
$11,428,571
Mid 4.55%
$10,549,451
High 4.95%
$9,696,970
Band basis: Curated from published quarterly cap-rate surveys and cross-checked against disclosed local transactions., n=12, observed 2026-06-30. How the band is built.
Sensitivity — value at ±150 bps of cap and ±10% of NOI
| NOI \ cap | 4.25% | 4.75% | 5.25% | 5.75% | 6.25% | 6.75% | 7.25% |
|---|---|---|---|---|---|---|---|
| -10% | $10.2M | $9.1M | $8.2M | $7.5M | $6.9M | $6.4M | $6.0M |
| -5% | $10.7M | $9.6M | $8.7M | $7.9M | $7.3M | $6.8M | $6.3M |
| 0% | $11.3M | $10.1M | $9.1M | $8.3M | $7.7M | $7.1M | $6.6M |
| +5% | $11.9M | $10.6M | $9.6M | $8.8M | $8.1M | $7.5M | $7.0M |
| +10% | $12.4M | $11.1M | $10.1M | $9.2M | $8.4M | $7.8M | $7.3M |
Fifty basis points of cap rate move this building by $667,826. That is the whole argument for arguing about the cap rate.
This is an indicated value derived from published direct-capitalisation math and a curated market cap-rate band. It is not an appraisal and not an AACI or MAI opinion of value.
Carry this deal forward
Your numbers travel with the link
The deal is encoded in the URL, never stored. Open a sister utility and it arrives pre-filled.
- CapitalorPre-acquisition & financingDebt-service the deal and find the loan the numbers support.
- LeaselorLeasing & incomeTurn rent, TMI and vacancy into the NOI you underwrote.Soon
- ZonelorPre-planning & feasibilitySize the buildable envelope before you price anything.Soon
Keep this deal under watch
Dealor
Save the deal and Dealor re-runs it every month against current rates and your own dates — so you hear about a broken DSCR or a lapsing renewal before your lender does.
Not advice — Valulor is a data publisher. Every figure here is an indicated value produced by published capitalisation math from inputs you supply — not an AACI, MAI or otherwise accredited opinion of value, not an appraisal, and not advice. Lenders, courts and tax authorities require an appraisal from a licensed appraiser; confirm any number here before you rely on it. About Valulor
02Read the answer
What is a building worth at a given cap rate?
Indicated value equals net operating income divided by the capitalisation rate. At $480,000 of NOI and a 5.75% cap the indicated value is $8,347,826; at 6.25% the same income is worth $7,680,000. The income did not change — the yield the market demands did.
Valulor facts
- Value is NOI divided by cap rate. Every other valuation method in commercial real estate is a longer road to that same relationship.
- 50 basis points of cap rate moves a mid-market building by roughly 8% of its value — more than a year of rent growth.
- A band, not a point. Valulor publishes a low, a mid and a high because no market clears at a single yield.
03Questions
How do you convert a cap rate into a property value?
Divide net operating income by the capitalisation rate expressed as a decimal. A building earning $480,000 of NOI at a 5.75% cap indicates a value of $8,347,826. That single division is the direct capitalisation approach.
What does the implied cap rate tell me?
It is the yield you are actually buying at your price: NOI divided by price. Compare it to the published band for that market and use class — inside the band you are paying market, below it you are paying a premium, above it something in the income or the asset is being discounted.
How much does 50 basis points of cap rate matter?
On a 5.75% cap, 50 bps moves value by roughly 8%. That is why the argument in every negotiation is about the cap rate, not the NOI.
Is this an appraisal?
No. It is an indicated value from published arithmetic and a curated band. Lenders, courts and tax authorities require an appraisal from a licensed appraiser.