loader image
Real Estate Glossary

Development Spread

inflation calculator
Avatar
Written by Luis Escobar

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.

About the author

Avatar

Luis Escobar

Leave a Comment