How do I find out the market cap rate in a submarket?

[Zack Eastwood]

How do you evaluate the cap rate of a market? How do you adjust the market cap rate based upon the asset class?

For example:

The market cap of the Orlando MSA according to the National Association of Realtors is 4.5 in Q4 2021. How can I find a more accurate cap for an unpriced asset in a submarket of Orlando (for example)? Also, how would I adjust for the different asset class, A B C class area?

[Bjorn Ahlblad]

@Zack Eastwood You could get help from a broker to get the cap rate. As for the ABCD stuff my formula for that is: one letter lower than what the seller tells you. If they say it is a B; then for sure it is a C!🤓