Dictionary of Business Terms: Overall Rate of Return (OAR)
Overall Rate of Return (OAR)
percentage relationship of net operating income divided by the purchase price of property.
Dictionary of Real Estate Terms: Overall Rate of Return (OAR)
Overall 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).
