📉 Cap Rate Expansion & Contraction Explained Simply for CRE Investors 📈

Bill Rapp, CRE Broker

Published on: 27/02/2026

Cap Rate Expansion & Contraction Explained Simply If you invest in commercial real estate in Houston, Katy, Fulshear, or West Houston, you must understand one concept: Cap rate expansion and cap rate contraction directly determine your property value — even if your NOI never changes.