Cap Rates

For the first three months of 2017, warehouse cap rates increased by more than 18 basis points, while CBD office decreased by 15.4 basis points.

National cap rate performance, based on properties and portfolios of $2.5 million and greater

*Data current through 3/31/2017. Source: Real Capital Analytics Inc., www.rcanalytics.com, 866-732-5328
*Data current through 3/31/2017.
Source: Real Capital Analytics Inc., www.rcanalytics.com, 866-732-5328

Cap rates for the first quarter of 2017 were between 5.2 and 7 percent, with suburban office and warehouse commanding the highest rates. Garden apartments and CBD office properties traded at the lowest cap rates. For the first three months of 2017, warehouse cap rates increased by more than 18 basis points, while CBD office decreased by 15.4 basis points. Year-over-year, the biggest cap-rate growth for commercial properties was 7 basis points for suburban office properties and the most significant decrease was in warehouse properties (-22.7 basis points), while the most significant growth for residential properties was 31.2 basis points for mid- and high-rise apartments.