Utah commercial real estate
Know what your Utah building is really worth.
Cap rates explained in plain English by a Utah commercial broker, with a free calculator. Run your own numbers, then get a free broker opinion of value from a real person.
Free tool
Cap rate calculator
Plain math on the numbers you type in. Nothing you enter leaves your browser.
This is arithmetic. It is not an opinion of value, and it is not an appraisal. Real values depend on the building, the leases, the location and the market.
What a cap rate is
A cap rate (capitalization rate) is a building's yearly net income divided by its price. A $2,000,000 building that nets $120,000 a year trades at a 6% cap rate.
Net operating income is rent and other income, minus operating costs like taxes, insurance, repairs and management. Loan payments and depreciation are not part of it.
Why it matters
Investors use cap rates to compare buildings of different sizes. A lower cap rate means buyers are paying more for each dollar of income, usually because they see the income as safer or growing.
What moves a cap rate
Tenant strength
A national tenant on a long lease reads as safer than a local tenant with a year left.
Lease terms
Who pays taxes, insurance and repairs (gross vs. NNN) changes what the income is really worth.
Property type
Industrial, retail, office, flex and land each trade on their own risk and demand.
Location
Access, visibility, growth nearby and the local vacancy picture all matter.
Interest rates
When borrowing costs rise, buyers usually need higher returns, and cap rates tend to follow.
Building condition
Deferred maintenance and roof or HVAC age come straight off what a buyer will pay.
Free broker opinion of value
How it works
Send the basics
Address, rent roll or leases, and last year's operating costs. A call works too.
We do the homework
We review your income and compare it with recent, similar Utah trades.
You get a range
A written opinion of value with the reasoning, usually within a few business days.
No pressure
Use it to plan, refinance or just know. Selling is your call, whenever you're ready.
Meet your broker
Stockton Farnsworth
Utah Associate Broker · Team Utah Commercial · brokered by RE/MAX Associates
Stockton has been a licensed Utah real estate professional since July 2015 and holds an active Utah Associate Broker license, earned through the Division of Real Estate's broker education, the broker exam and full-time licensed experience. He works industrial, retail, office, land and investment property across Utah, and is a candidate member of the CCIM Institute, working toward the CCIM designation.
He works alongside team lead Robert Farnsworth, who began selling real estate in 1984, on Team Utah Commercial, the team named the #1 Commercial RE/MAX Team in Utah, 2024 and 2025.
Insights
All postsNNN vs Gross Lease and How Lease Type Changes Value
NNN, modified gross and full service gross leases split costs differently. See how lease structure changes NOI and value, with a worked example for Utah owners.
ReadHow to Calculate Cap Rate Step by Step (Utah Owner Guide)
Learn how to calculate a cap rate step by step, with a worked example and the NOI mistakes that skew value, like counting loan payments or asking rents.
ReadCap Rate vs Cash-on-Cash vs IRR, and What Each Measures
Cap rate, cash-on-cash return and IRR answer different questions. Learn what each measures, how to calculate it, and when a Utah building owner should care.
ReadCommon questions
What is a good cap rate in Utah?
There's no single good number. It depends on the property type, the tenant, the lease and the location, and it moves with interest rates. A broker opinion of value compares your building with recent, similar trades.
How do I find my building's net operating income?
Start with the rent you actually collect, subtract vacancy, then subtract operating costs like taxes, insurance, repairs and management. Don't subtract loan payments. Our step-by-step guide walks through it.
Is a broker opinion of value the same as an appraiser's report?
No. A broker opinion of value is a licensed broker's estimate of likely price. It is not an appraisal and can't be used where an appraisal is required.
What does the free opinion of value cost me?
Nothing, and there's no obligation. If you later decide to sell, we'd like to earn that business, but that's your call.
Talk to a broker, not a call center
Want a real number on your building?
Get a free broker opinion of value on your Utah commercial property. No cost, no obligation. A broker opinion of value is not an appraisal.
- A real answer within one business day
- No cost and no obligation to talk
- Your information stays with our team
Call 801-664-3370 Text me Email
You'll reach Stockton Farnsworth, Utah Associate Broker, Team Utah Commercial · brokered by RE/MAX Associates.
Stockton Farnsworth
Utah Associate Broker · Team Utah Commercial