How is cap rate calculated on commercial property?

Cap rate = annual NOI ÷ property value. A 7.5% cap on $1.85M value implies $138,750 annual NOI. Lenders also stress DSCR on the debt service, not cap rate alone.

What DSCR do commercial lenders require?

Most CRE permanent and bridge exit programs require 1.20–1.30+ DSCR depending on tenant credit, lease term, and asset class. Retail strip and mixed-use often need stronger coverage than NNN single-tenant.

Does Jaken Finance Group offer commercial bridge loans?

Yes — asset-based bridge and permanent CRE for experienced sponsors. See commercial lending Illinois retail and bridge loans Chicago mixed-use for market context.

What is a good cash-on-ccash on commercial deals?

Experienced sponsors often target 8%–12%+ cash-on-cash on stabilized acquisitions after debt service — but value-add bridge deals may show negative carry until lease-up.

How is cap rate calculated on commercial property?

Cap rate = annual NOI ÷ property value. A 7.5% cap on $1.85M value implies $138,750 annual NOI. Lenders also stress DSCR on the debt service, not cap rate alone.

What DSCR do commercial lenders require?

Most CRE permanent and bridge exit programs require 1.20–1.30+ DSCR depending on tenant credit, lease term, and asset class. Retail strip and mixed-use often need stronger coverage than NNN single-tenant.

Does Jaken Finance Group offer commercial bridge loans?

Yes — asset-based bridge and permanent CRE for experienced sponsors. See commercial lending Illinois retail and bridge loans Chicago mixed-use for market context.

What is a good cash-on-ccash on commercial deals?

Experienced sponsors often target 8%–12%+ cash-on-cash on stabilized acquisitions after debt service — but value-add bridge deals may show negative carry until lease-up.

Commercial Property Calculator for Investors

This commercial property calculator models net operating income (NOI), cap rate, debt service coverage (DSCR), and cash-on-cash return on income-producing commercial real estate — the same ratios Jaken Finance Group uses to underwrite CRE bridge and permanent loans.

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Cap rate and DSCR summaries are free. Submit your email for a detailed debt-service worksheet and PDF proforma.

Click after submitting the form above. Your detailed schedule will appear on this page.

Commercial NOI and cap rate formulas

NOI = Effective gross income − operating expenses

Cap rate = Annual NOI ÷ property value

DSCR = Monthly NOI ÷ monthly debt service (P&I or IO)

Unlike residential DSCR on 2–4 unit, commercial underwriting relies on executed leases, CAM reconciliations, and tenant credit. Vacancy and TI reserves must be modeled on lease rollover — especially on multi-tenant retail.

Worked example: neighborhood strip center

Line item	Annual
Effective gross income	$150,000
Operating expenses	−$38,000
NOI	$112,000
Value @ 7.5% cap	$1,493,333
Loan @ 65% LTV	$970,667
Debt service @ 8.25%, 25yr	~$92,400/yr
DSCR	1.21

Commercial programs

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Calculator outputs are educational estimates only. CRE terms offered only to qualified borrowers on non-owner-occupied assets.

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Commercial Property Calculator for Investors