What factor is NOT typically considered when evaluating cap rates for specific properties?

When evaluating capitalization rates (cap rates) for specific properties, several factors are taken into account to assess the potential return on investment. Cap rates are used as a measure to determine the value of a property based on its net operating income (NOI) relative to its purchase price or value.

Building age, design, and quality are crucial because they can influence the property's appeal to tenants, its maintenance costs, and the ability to attract higher rents. The condition and design can also impact the longevity of the investment and future capital expenditures required.

Lease agreement covenants and conditions play a significant role as well, as they outline the terms under which tenants occupy the space. These agreements can dictate the stability of income, tenant obligations regarding maintenance, and any restrictions that might affect the property's value.

Parking ratios, which refer to the number of parking spaces available relative to the square footage of the building, are important in certain markets, especially where accessibility and convenience significantly impact tenant desirability and rental rates.

Conversely, environmental regulations are not typically a direct factor in calculating cap rates. While they can affect the operations and potential liabilities of a property, they do not have a straightforward impact on the calculation of the cap rate itself. These regulations might influence other aspects of