1. CONTENTS (1) RESEARCH OBJECTIVES This study aims at finding out hands-on methods of estimating cap rates through empirical analyses. Also this study aims at suggesting some alternatives in providing continuous cap rates to the appraisal business. (2) RESEARCH METHOD The cap rates is analyzed by empirical data on net operating income(NOI) and asset price of sample office buildings. (3) RESEARCH FINDINGS The result shows that cap rates of large buildings are higher than those of small buildings. In further analysis by type of operating methods of the rental deposit, the cap rates applying CD rates are lower than those applying deposit-rental conversion rates by from 0.5% to 1.2%. Also we make a suggestion on computing continuous cap rates. 2. RESULTS The demand of direct capitalization method is increasing according to the introduction of REITs, Indirect Investment Asset Management Business Act and Korean International Financial Reporting Standards. In further analysis by type of operating methods of the rental deposit, the cap rates applying CD rates are lower than those applying deposit-rental conversion rates by from 0.5% to 1.2%. Also we make a suggestion on computing continuous cap rates.