A process of converting income to value. (See also direct capitalization and yield capitalization).
 A valuation method used to convert a single year's income expectancy (or an annual average of several year's income expectancies) into a value estimate.  A capitalization technique that utilizes capitalization (cap) rates and multipliers extracted from sales to provide a value estimate. Yield and value change are implied but not identified.
The term used to explain the compound interest rate used in the in approach to value to convert expected future cash flows into a present value.
A valuation technique that specifies  the quantity, variability, timing, duration of periodic income, and  the quantity/timing of the reversion (sale of property) then discounts these cash flows at a specified yield rate to derive a present value estimate.
Anticipated income from operation of the real estate after deduction for vacancy and collection loss.
The leased fee interest, as distinguished from the leasehold estate (tenant rights to occupancy), is defined as the ownership interest held by a landlord with the right of occupancy and use conveyed to others. Theoretically, the combined estates would make up the fee simple estate which is the unencumbered interest traditionally valued. When a lease encumbers a property, the partitioned interests must be analyzed. The rights of the leased fee owner (the lessor) and the leasehold (the lessee) are specified by contract terms contained within the lease. Regardless of the interest appraised, all estates are subject to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
The net income left remaining after deduction of all operating expenses from effective gross income but before payment of debt service and deduction of book depreciation.
The total income a property is capable of generating at full occupancy but before deduction of vacancy and operating expenses.
 the value of property at the expiration of a certain time period.  the right of a lessor to possess leased property upon the termination of a lease.  REVERSIONARY INTEREST - the interest a person has in property upon the termination of the preceding estate.
A capitalization method that derives a present value estimate by discounting each future benefit at an appropriate yield rate or by developing and overall rate that explicitly reflects the investment's income pattern, value change, and yield rate. A valuation method that converts projected income into value and considers the equity return on investment.