Cap Rate by City — 2026 U.S. Market Data
Last Updated: 2026 Q1
Capitalization rates vary significantly by metro area, reflecting local supply-demand dynamics, population growth, and institutional capital flows. The table below presents directional Cap Rate ranges for stabilized, Class B assets across four major property types.
| City | Multifamily | Office | Retail (NNN) | Industrial |
|---|---|---|---|---|
| New York, NY | 4.2%–4.8% | 6.5%–7.5% | 5.5%–6.2% | 4.8%–5.5% |
| Los Angeles, CA | 4.0%–4.7% | 6.0%–7.0% | 5.2%–6.0% | 4.5%–5.2% |
| Chicago, IL | 5.5%–6.2% | 7.5%–8.5% | 6.5%–7.5% | 5.8%–6.5% |
| Houston, TX | 5.2%–6.0% | 7.0%–8.2% | 6.2%–7.2% | 5.5%–6.2% |
| Phoenix, AZ | 5.0%–5.8% | 7.0%–8.0% | 6.0%–7.0% | 5.2%–6.0% |
| Dallas, TX | 5.0%–5.7% | 6.8%–7.8% | 6.0%–7.0% | 5.0%–5.8% |
| Austin, TX | 4.8%–5.5% | 6.5%–7.5% | 5.8%–6.8% | 4.8%–5.5% |
| Miami, FL | 4.5%–5.2% | 6.5%–7.5% | 5.5%–6.5% | 5.0%–5.8% |
| Atlanta, GA | 5.0%–5.8% | 7.0%–8.0% | 6.0%–7.0% | 5.2%–6.0% |
| Denver, CO | 4.8%–5.5% | 7.0%–8.0% | 5.8%–6.8% | 5.0%–5.8% |
| Seattle, WA | 4.5%–5.2% | 6.5%–7.5% | 5.5%–6.5% | 4.5%–5.2% |
| Nashville, TN | 5.0%–5.8% | 7.0%–8.0% | 6.0%–7.0% | 5.5%–6.2% |
| Charlotte, NC | 5.2%–6.0% | 7.2%–8.2% | 6.2%–7.2% | 5.5%–6.2% |
| San Francisco, CA | 4.2%–5.0% | 7.0%–8.5% | 5.2%–6.0% | 4.2%–5.0% |
| Tampa, FL | 5.0%–5.8% | 7.0%–8.0% | 6.0%–7.0% | 5.2%–6.0% |
| Raleigh, NC | 5.0%–5.7% | 7.0%–8.0% | 6.0%–7.0% | 5.2%–6.0% |
| Minneapolis, MN | 5.5%–6.2% | 7.5%–8.5% | 6.5%–7.5% | 5.8%–6.5% |
| Las Vegas, NV | 5.2%–6.0% | 7.5%–8.5% | 6.2%–7.2% | 5.5%–6.2% |
| San Diego, CA | 4.5%–5.2% | 6.5%–7.5% | 5.5%–6.5% | 4.8%–5.5% |
| Boston, MA | 4.5%–5.2% | 6.5%–7.5% | 5.5%–6.5% | 5.0%–5.8% |
Sources & Methodology
Data is a directional underwriting benchmark, not a row-level transaction database. Ranges are normalized from public source families including the NCREIF Property Index (NPI), Real Capital Analytics / CPPI market references, CBRE's North America Cap Rate Survey, and public broker market reports. Each range is adjusted toward stabilized Class B assets and widened where source data conflicts or market dispersion is high.
Coverage
The table focuses on 20 major U.S. metros and four common property categories. It is intended for directional underwriting, not for pricing a specific address.
Asset Standard
Ranges are normalized toward stabilized Class B assets. Newer Class A properties may trade lower, while older Class C or heavy value-add assets may trade higher.
Range Logic
Each range reflects an estimated middle band rather than a single point estimate. Outliers, distressed sales, portfolio trades, and unusual lease structures are excluded where possible.
Audit Trail & Normalization
The dataset now has a maintained source note covering source families, field definitions, normalization rules, limitations, and update checks. We do not publish proprietary row-level transaction records or present these estimates as exact deal comps. The public table should be read as a defensible market benchmark for screening and sensitivity work.
Source Families Used
NCREIF / NPI
Used to calibrate institutional stabilized-asset return trends. It is a market reference layer, not a direct source for every city-property row.
RCA / CPPI
Used for commercial real estate pricing-cycle and transaction-trend context. Proprietary deal-level records are not copied into the public table.
CBRE Cap Rate Survey
Used as the main survey-style reference for property-type and market risk tiers, especially when comparing stabilized assets across metros.
Public Broker Reports
CBRE, JLL, Cushman, Colliers, and similar public market reports are used for sanity checks where they discuss local cap rate movement.
Important Limitations
City-level cap rates are broad market references. Actual deal pricing depends on submarket, tenant quality, lease rollover, rent growth, property condition, financing terms, and required capital expenditures. Always compare against recent local comps and run your own NOI assumptions before making an offer.
How to Use This Data
- Step 1
Pick the closest city and property type as a starting benchmark.
- Step 2
Adjust the range for asset quality, tenant risk, age, and submarket liquidity.
- Step 3
Use the adjusted cap rate with your annual NOI in the property value calculator or cap rate calculator.
Key Market Insights — 2026
Gateway Premium Narrows
The cap rate gap between gateway cities (NYC, LA, SF) and Sun Belt markets (Austin, Phoenix, Nashville) has compressed from 150+ bps in 2020 to just 50–80 bps in 2026, driven by migration patterns and remote work adoption.
Office Divergence
Office cap rates show the widest range across cities (6.0%–8.5%), reflecting the uneven impact of hybrid work. Markets with strong tech/biotech employment (Austin, Seattle) are recovering faster than traditional business districts.
Industrial Strength
Industrial cap rates remain the tightest across all metros, reflecting sustained demand from e-commerce logistics and nearshoring. Last-mile facilities in port cities command the lowest rates.
Frequently Asked Questions
How often is this data updated?
We update the city-level cap rate data quarterly, typically within 30 days of the end of each quarter. The current dataset reflects transactions through Q1 2026.
Why do cap rates vary so much by city?
Cap rates reflect local risk-reward dynamics: population growth, job creation, supply pipeline, and institutional capital demand. Cities with strong in-migration and limited new construction (like Austin and Miami) tend to have lower (more compressed) cap rates.
Are these cap rates for Class A or Class B properties?
The data represents median cap rates for stabilized Class B assets. Class A trophy assets in the same markets will typically trade at 50–100 basis points lower, while Class C assets trade 100–200 bps higher.
Is this a transaction-level cap rate database?
No. This page is a directional market benchmark built from public source families and underwriting normalization rules. It does not expose proprietary transaction records, and the ranges should be validated against current local comps before you price a specific property.