Real Estate Glossary

Development Spread

inflation calculator
Richard Wilson
Written by Richard Wilson

This measures the value added by taking on the lease-up and construction risk. The greater the development spread is, the more likely the development will be financially feasible. To calculate the development risk, take the difference between the going-in cap rate and the going-out cap rate.

This measures the value added by taking on the lease-up and construction risk. The greater the development spread is, the more likely the development will be financially feasible. To calculate the development risk, take the difference between the going-in cap rate and the going-out cap rate.

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Richard Wilson

Richard Wilson

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