Final answer:
The capitalization approach using gmrm stands for capitalizing the annual net operating income of a property at a market-derived rate using the Gross Income Multiplier method. It's a valuation method for income-producing properties.
Step-by-step explanation:
The capitalization approach using a gmrm refers to the method of determining the value of an income-producing property by capitalizing its annual net operating income (NOI) at a market-derived rate. The gmrm stands for Gross Income Multiplier, which is a numeric factor that expresses the relationship between gross rental income and the sale price or value of the property. To calculate the value using the capitalization approach with a GMRM, one would take the property's gross rents and multiply it by the GMRM factor. It is a relatively simple, yet effective way to estimate the value of a rental property in situations where comparable sales data is readily available and the property's expenses are typical for the type of property being valued.