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Business Definition for: Overall Rate of Return (OAR)
Overall Rate of Return (OAR)
percentage relationship of net operating income divided by the purchase price of property.
See also capitalization rateOverall Rate of Return (OAR)
the percentage relationship of Net Operating Income divided by the purchase price of property.
Example: Property that sells for $1,000,000 is anticipated to produce a net operating income of $100,000 per year. The indicated overall rate of return is 0.10 or 10% ($100,000 ÷ $1,000,000).
See also capitalization rate
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
