2019 Cap Rates

National property performance based on properties and portfolio sales of $2.5 million and greater across the multifamily, office, retail and industrial sectors, updated quarterly.
Data current through 2/26/2019.
Source: Real Capital Analytics Inc.

Cap rates for the fourth quarter were between 5.1 and 6.8 percent, with Suburban Office, Retail and Warehouse recording the highest rates, according to Real Capital Analytics. Mid- and High-rise Apartments traded at the lowest cap rates (5.1 percent), followed by CBD Office at 5.4 percent. Cap rates for Suburban Office stood at 6.8 as of the fourth quarter of 2018, followed by retail (6.6 percent) and Warehouse (6.3 percent).

Office CBD cap rates increased by 10 basis points quarter-over-quarter, while Suburban Office dropped by 10 basis points. Year-over-year, Office CBD assets recorded the highest growth rate for commercial properties (30 basis points), while Warehouse properties declined by 20 basis points. On an year-over-year basis, cap rates for residential properties posted modest changes—rates dropped by 10 basis points for Garden Apartments, while rates for Mid- and High-rise Apartments increased by 10 basis points.

—Posted on Mar. 26, 2019