How is the return on investment of commercial real estate calculated?

Several data that general developers must consider when determining the return on investment in commercial real estate; 1. Loan interest rate: currently above 6%. 2. Price coefficient: At present, the average annual growth rate is 2-3%. 3. Risk coefficient: generally not lower than the loan interest rate, temporarily 6%. 4. Reduction interest rate: the return on investment used in the pricing analysis of commercial property income method must include the influence of loan interest rate, price coefficient and risk coefficient on the return on investment. The first three items add up to 14. (If it is all self-owned, it can be calculated at an annual interest rate of 2%. ) If the risk coefficient is zero, the annual return on investment of 10% will earn little. If the management is not good, the market will be depressed, and the rent will fall instead of rising. 5. The loan interest rate and price coefficient are changing year by year, mostly rising and dynamic; 6. The risk coefficient is related to the dynamic change of the investment market, which mainly depends on the rise and fall of the housing market and the desire of investors, just like stock trading.