That's nice, but how do you define NOI? Actual T-12? Current Rent Roll and T-12 Expenses? Fiscal Year End? Seller's expenses? Buyer's Fully Loaded Proforma Expenses? Actual Vacancy? Proforma Vacancy/Credit Loss?
I've either acquired, financed, or invested in well over a billion dollars of commercial real estate (not counting the billions that I've passed on) in all of the food groups, so I'm well aware of how the cap rate is used, but any reliance on an implied cap rate is inherently flawed in most cases because you have no idea what the details of the buyer's NOI underwriting are, other than what some broker put out in a marketing package. I'm also aware that most single tenant buyers use cap rate to value their purchases, because more math than that hurts their heads.
In my opinion, any property that has leases over 1 year or is not stabilized, should be valued using a DCF model. The cap rate theoretically has a built in inflation component that is irrelevant to properties that have fixed income on longterm leases with changing payment streams. Cap Rate is the formula for valuing a perpetuity, which income producing real estate is not. It certainly doesn't capture future re-tenanting costs associated with Office/Industrial/Retail properties.
I believe the OP is talking about implied market cap rates, which are only useful for dick measuring.
Just a bitter old real estate guy's opinion....