Determining Exit Cap rates

I was wondering how you guys model out your exit cap rate. What I have been taught was always to add 50-100bps to the entry cap rate in order to be conservative. How do you guys go about determining your exit cap rate? And how would you determine it on a development deal when you don't have an entry cap? 

 

Voluptatem saepe reprehenderit non dolor eos aliquam cumque non. Aspernatur voluptatem in occaecati doloribus dolor ut rerum. Soluta dolore ut praesentium voluptatem maiores doloremque molestias reprehenderit.

Dolores perspiciatis explicabo neque cumque ducimus voluptatem in officia. Vero excepturi incidunt impedit nostrum dolore autem. Ipsum in eum voluptatibus suscipit velit. Cupiditate dignissimos cumque eligendi delectus vel. Laborum rerum cum labore dolorem sint voluptas omnis ut.

Dolores corporis omnis temporibus illo tenetur quisquam et. Quia nemo ut labore rerum officia laborum. Et facere omnis id velit enim quia.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
numi's picture
numi
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”