Place the crab cakes into the oven on the broiler rack, right below the broiler, for around 12 minutes. Halfway through the 12 minutes, remove the crab cakes from the broiler rack, flip the crab cakes, and put them back under the broiler.
What is the 'Operating Expense Ratio - OER'. The operating expense ratio (OER) is a measure of what it costs to operate a piece of property compared to the income that the property brings in. The operating expense ratio is calculated by dividing a property's operating expense by its gross operating income and used for comparing the expenses of similar properties.
If a property was listed for R1,000,000 and generated a net operating income (NOI) of R100,000, then the cap rate would be R100,000/R1 million or 10%. Thus, cap rate = annual net operating income/cost and is expressed as a percentage. Here is how a cap rate is commonly used. Suppose you are researching the recent sale of a warehouse building with a stabilised Net Operating Income (NOI) of R1 million, and a sale price of R17 million, it is common to say that this property sold at a 5.8% cap rate.