Benchmark cap rates for commercial real estate by property type and market, sourced from CBRE, Marcus & Millichap, and the Federal Reserve Bank of St. Louis. Updated quarterly.
Data last refreshed: April 28, 2026 · Sources: FRED, CBRE, Marcus & Millichap, BLS
National benchmark ranges — Q1 2026 · Source: CBRE Cap Rate Survey & Marcus & Millichap
| Property Type | Cap Rate Range | Trend |
|---|---|---|
| Multifamily (Class A) | 4.75%–5.50% | Expanding |
| Multifamily (Class B/C) | 5.50%–6.75% | Expanding |
| Industrial / Warehouse | 5.25%–6.25% | Stable |
| Retail (Strip Center) | 6.50%–8.00% | Stable |
| Retail (Single Tenant NNN) | 5.50%–6.75% | Expanding |
| Office (CBD Class A) | 6.50%–8.50% | Expanding |
| Office (Suburban) | 7.50%–10.00% | Expanding |
| Self-Storage | 5.50%–6.50% | Stable |
| Hotel (Full Service) | 7.00%–9.00% | Stable |
| Mixed-Use | 5.50%–7.00% | Stable |
City-level cap rate ranges, average rents, and vacancy rates · Source: CoStar / CBRE Market Reports
The capitalization rate (cap rate) is the most widely used metric in commercial real estate valuation. It represents the ratio of a property's net operating income (NOI) to its current market value or purchase price.
Formula: Cap Rate = NOI ÷ Property Value
A higher cap rate generally indicates higher risk and potentially higher return. Lower cap rates (4%–5%) are typical in gateway markets like New York and San Francisco, while secondary markets often trade at 6%–8%+.
Cap rate vs. interest rates: When the Federal Reserve raises rates, cap rates typically follow with a lag of 6–18 months as buyers demand higher yields to compensate for higher borrowing costs.
The current 30-year mortgage rate of 6.23% creates a -0.98% spread for Class A multifamily — meaning many deals are currently cash-flow negative without significant equity or below-market debt.
Cap rate data is sourced from CBRE and Marcus & Millichap quarterly surveys. FRED data (mortgage rates, delinquency rates) is fetched live from the Federal Reserve Bank of St. Louis API. BLS PPI data is sourced from the Bureau of Labor Statistics. All data is for informational purposes only and should not be construed as investment advice.