Cap Rate for Real Estate properties Class A, B, C in the 100 Largest Cities in the USA


Below is our estimate of the Cap Rate for different properties types (Multi-family, Retail, Shopping, Industrial, and office) for the 100 largest cities in the United States. The cities are ranked by population size from largest to smallest. We estimate the Cap Rate based on properties available for sale during a specific period. The cap rate can vary depending on properties being offered at the market during that period and the sample of properties considered.

What is Cap Rate?

Capitalization rate (Cap Rate) is a formula used to estimate the potential return an investor will have on a real estate property. The formula calculates the ratio of the properties Net Operating Income (NOI) to property asset value. The NOI value is usually the actual NOI of the property over the period of one year. The amount used for the properties asset value is often the asking sales price for the property or the purchase price the investor is expecting to pay for the property.

What are property Class A, B, and C?

We classified the properties into three Classes, Class A, B, and C. There is no one specific definition of what qualifies a property as Class A, B or C. But for our cap rate table you can think of property Cass A as being properties with the highest quality, in the best location, or the newest conditions (recently renovated). Properties Class C are older properties, in less desirable locations, that can potentially require extensive renovation. Properties in Class B are between Class A and C, where the properties are not the newest, don't have the highest quality, or are in as desirable locations compared to Class A properties. There can have different combinations of these scenarios were a lower quality property may be located in a highly desirable area, or where a property is new condition or has high quality and infrastructure but is in a less desirable location.

Below are the types of properties we include in each of the categories of real estate assets.

Multi-Family real estate asset are residential properties comprised of multiple separate housing units within the same building or a complex. Although duplex, triplex are fourplex are multifamily units, for our multi-family category, we include properties with more than four residential units.

Retail real estate assets include grocery stores, pharmacy stores, drug stores, supermarket stores, convenience stores, corner stores, restaurants, service stations, gas stations, retail gallery, free-standing retail buildings, freestanding restaurants and fast food restaurants, bars, bank buildings, coffee shops, showrooms, storefront, daycare facility, and other retail establishments.

Shopping Center real estate assets include shopping centers, shopping plaza, strip centers, strip malls, outlet centers, factory outlets, community centers, regional malls, health clubs, auto repair, super regional Malls, mixed-use shopping centers and lifestyle shopping centers, and other shopping center type properties.

Industrial real estate assets include distribution centers, light industry, heavy industry, manufacturing facilities, office and industrial building, R&D facilities, flex facilities, warehouses, distribution and bulk-distribution centers, and other industrial type properties.

Office real estate assets include single and multi-tenant office buildings, corporate office buildings, office malls, industrial and campus office parks, medical and healthcare offices, office and storefront retail, loft and creative office space, live and work unit and other office type properties.

Specialty real estate assets include amusement park, assisted living, baseball field and other sport centers, car wash, casino, congregate senior housing, continuing care, golf range, horse stables, hospital, rehabilitation center, marina, parking, religious facility, schools and university, self-storage, skilled nursing facility, race track, retirement community, skating rink, swimming pool, theater and concert hall.

Cap Rate for Different Property Types and Class Across Biggest Cities in the USA

Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
1 New York New York A 2.52 *Please Login to See More
1 New York New York B 5.06 *Please Login to See More
1 New York New York C 6.7 *Please Login to See More
2 Los Angeles California A 2.62 *Please Login to See More
2 Los Angeles California B 5.75 *Please Login to See More
2 Los Angeles California C 7.31 *Please Login to See More
3 Chicago Illinois A 4.31 *Please Login to See More
3 Chicago Illinois B 6.08 *Please Login to See More
3 Chicago Illinois C 9.07 *Please Login to See More
4 Houston Texas A 5.23 *Please Login to See More
4 Houston Texas B 7.26 *Please Login to See More
4 Houston Texas C 8.09 *Please Login to See More
5 Phoenix Arizona A 5.37 *Please Login to See More
5 Phoenix Arizona B 6.94 *Please Login to See More
5 Phoenix Arizona C 8.1 *Please Login to See More
6 Philadelphia Pennsylvania A 4.83 *Please Login to See More
6 Philadelphia Pennsylvania B 6.34 *Please Login to See More
6 Philadelphia Pennsylvania C 7.51 *Please Login to See More
7 San Antonio Texas A 6.51 *Please Login to See More
7 San Antonio Texas B 7.02 *Please Login to See More
7 San Antonio Texas C 9.35 *Please Login to See More
8 San Diego California A 2.94 *Please Login to See More
8 San Diego California B 3.66 *Please Login to See More
8 San Diego California C 5.41 *Please Login to See More
9 Dallas Texas A 4.56 *Please Login to See More
9 Dallas Texas B 5.92 *Please Login to See More
9 Dallas Texas C 8.53 *Please Login to See More
10 San Jose California A 3.56 *Please Login to See More
10 San Jose California B 4.32 *Please Login to See More
10 San Jose California C 5.64 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
11 Austin Texas A 5.32 *Please Login to See More
11 Austin Texas B 6.4 *Please Login to See More
11 Austin Texas C 7.51 *Please Login to See More
12 Jacksonville Florida A 6.05 *Please Login to See More
12 Jacksonville Florida B 6.83 *Please Login to See More
12 Jacksonville Florida C 8.41 *Please Login to See More
13 San Francisco California A 2.5 *Please Login to See More
13 San Francisco California B 3.14 *Please Login to See More
13 San Francisco California C 5.23 *Please Login to See More
14 Columbus Ohio A 5.88 *Please Login to See More
14 Columbus Ohio B 7.54 *Please Login to See More
14 Columbus Ohio C 9.41 *Please Login to See More
15 Indianapolis Indiana A 7.2 *Please Login to See More
15 Indianapolis Indiana B 8.68 *Please Login to See More
15 Indianapolis Indiana C 10.32 *Please Login to See More
16 Fort Worth Texas A 6.65 *Please Login to See More
16 Fort Worth Texas B 8.72 *Please Login to See More
16 Fort Worth Texas C 9.05 *Please Login to See More
17 Charlotte North Carolina A 5.83 *Please Login to See More
17 Charlotte North Carolina B 6.26 *Please Login to See More
17 Charlotte North Carolina C 7.82 *Please Login to See More
18 Seattle Washington A 2.23 *Please Login to See More
18 Seattle Washington B 3.51 *Please Login to See More
18 Seattle Washington C 5.75 *Please Login to See More
19 Denver Colorado A 4.74 *Please Login to See More
19 Denver Colorado B 5.73 *Please Login to See More
19 Denver Colorado C 8.1 *Please Login to See More
20 El Paso Texas A 5.23 *Please Login to See More
20 El Paso Texas B 6.1 *Please Login to See More
20 El Paso Texas C 6.94 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
21 Washington DC A 3.93 *Please Login to See More
21 Washington DC B 5.9 *Please Login to See More
21 Washington DC C 6.92 *Please Login to See More
22 Boston Massachusetts A 2.2 *Please Login to See More
22 Boston Massachusetts B 3.92 *Please Login to See More
22 Boston Massachusetts C 5.05 *Please Login to See More
23 Detroit Michigan A 6.96 *Please Login to See More
23 Detroit Michigan B 8.6 *Please Login to See More
23 Detroit Michigan C 13.45 *Please Login to See More
24 Nashville Tennessee A 6.32 *Please Login to See More
24 Nashville Tennessee B 7.28 *Please Login to See More
24 Nashville Tennessee C 7.89 *Please Login to See More
25 Memphis Tennessee A 7.03 *Please Login to See More
25 Memphis Tennessee B 10.63 *Please Login to See More
25 Memphis Tennessee C 14.39 *Please Login to See More
26 Portland Oregon A 2.94 *Please Login to See More
26 Portland Oregon B 3.6 *Please Login to See More
26 Portland Oregon C 4.97 *Please Login to See More
27 Oklahoma City Oklahoma A 7 *Please Login to See More
27 Oklahoma City Oklahoma B 8.93 *Please Login to See More
27 Oklahoma City Oklahoma C 11.73 *Please Login to See More
28 Las Vegas Nevada A 4.96 *Please Login to See More
28 Las Vegas Nevada B 6.21 *Please Login to See More
28 Las Vegas Nevada C 7.4 *Please Login to See More
29 Louisville Kentucky A 5.69 *Please Login to See More
29 Louisville Kentucky B 7.5 *Please Login to See More
29 Louisville Kentucky C 8.11 *Please Login to See More
30 Baltimore Maryland A 7.26 *Please Login to See More
30 Baltimore Maryland B 8.92 *Please Login to See More
30 Baltimore Maryland C 10.4 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
31 Milwaukee Wisconsin A 6 *Please Login to See More
31 Milwaukee Wisconsin B 8.16 *Please Login to See More
31 Milwaukee Wisconsin C 13.52 *Please Login to See More
32 Albuquerque New Mexico A 5.11 *Please Login to See More
32 Albuquerque New Mexico B 8.95 *Please Login to See More
32 Albuquerque New Mexico C 10.56 *Please Login to See More
33 Tucson Arizona A 6.42 *Please Login to See More
33 Tucson Arizona B 7.19 *Please Login to See More
33 Tucson Arizona C 9.3 *Please Login to See More
34 Fresno California A 4.05 *Please Login to See More
34 Fresno California B 6.42 *Please Login to See More
34 Fresno California C 8.11 *Please Login to See More
35 Sacramento California A 4.75 *Please Login to See More
35 Sacramento California B 6.02 *Please Login to See More
35 Sacramento California C 8.3 *Please Login to See More
36 Mesa Arizona A 6.22 *Please Login to See More
36 Mesa Arizona B 7.89 *Please Login to See More
36 Mesa Arizona C 9.13 *Please Login to See More
37 Kansas City Missouri A 6.14 *Please Login to See More
37 Kansas City Missouri B 8.13 *Please Login to See More
37 Kansas City Missouri C 10.32 *Please Login to See More
38 Atlanta Georgia A 5.58 *Please Login to See More
38 Atlanta Georgia B 6.6 *Please Login to See More
38 Atlanta Georgia C 8.74 *Please Login to See More
39 Long Beach California A 2.99 *Please Login to See More
39 Long Beach California B 5.35 *Please Login to See More
39 Long Beach California C 6.21 *Please Login to See More
40 Colorado Springs Colorado A 5.76 *Please Login to See More
40 Colorado Springs Colorado B 7.56 *Please Login to See More
40 Colorado Springs Colorado C 9.45 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
41 Raleigh North Carolina A 6.19 *Please Login to See More
41 Raleigh North Carolina B 7.44 *Please Login to See More
41 Raleigh North Carolina C 9.31 *Please Login to See More
42 Miami Florida A 2.59 *Please Login to See More
42 Miami Florida B 4.99 *Please Login to See More
42 Miami Florida C 7.64 *Please Login to See More
43 Virginia Beach Virginia A 4.92 *Please Login to See More
43 Virginia Beach Virginia B 6.23 *Please Login to See More
43 Virginia Beach Virginia C 7.93 *Please Login to See More
44 Omaha Nebraska A 5.19 *Please Login to See More
44 Omaha Nebraska vi 7.31 *Please Login to See More
44 Omaha Nebraska C 8.85 *Please Login to See More
45 Oakland California A 3.81 *Please Login to See More
45 Oakland California B 4.57 *Please Login to See More
45 Oakland California C 7.16 *Please Login to See More
46 Minneapolis Minnesota A 5.49 *Please Login to See More
46 Minneapolis Minnesota B 7.63 *Please Login to See More
46 Minneapolis Minnesota C 9.91 *Please Login to See More
47 Tulsa Oklahoma A 5.32 *Please Login to See More
47 Tulsa Oklahoma B 8.47 *Please Login to See More
47 Tulsa Oklahoma C 9.2 *Please Login to See More
48 Arlington Texas A 6.11 *Please Login to See More
48 Arlington Texas B 8.16 *Please Login to See More
48 Arlington Texas C 8.92 *Please Login to See More
49 New Orleans Louisiana A 5.51 *Please Login to See More
49 New Orleans Louisiana B 7.49 *Please Login to See More
49 New Orleans Louisiana C 10.88 *Please Login to See More
50 Wichita Kansas A 6.16 *Please Login to See More
50 Wichita Kansas B 7.53 *Please Login to See More
50 Wichita Kansas C 9.68 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
51 Cleveland Ohio A 5.99 *Please Login to See More
51 Cleveland Ohio B 8.2 *Please Login to See More
51 Cleveland Ohio C 14.27 *Please Login to See More
52 Tampa Florida A 4.25 *Please Login to See More
52 Tampa Florida B 6.16 *Please Login to See More
52 Tampa Florida C 9.45 *Please Login to See More
53 Bakersfield California A 4.57 *Please Login to See More
53 Bakersfield California B 6.93 *Please Login to See More
53 Bakersfield California C 7.9 *Please Login to See More
54 Aurora Colorado A 5.38 *Please Login to See More
54 Aurora Colorado B 6.81 *Please Login to See More
54 Aurora Colorado C 8.52 *Please Login to See More
55 Honolulu Hawaii A 4.04 *Please Login to See More
55 Honolulu Hawaii B 5.55 *Please Login to See More
55 Honolulu Hawaii C 7.32 *Please Login to See More
56 Anaheim California A 3.5 *Please Login to See More
56 Anaheim California B 4.72 *Please Login to See More
56 Anaheim California C 6.14 *Please Login to See More
57 Santa Ana California A 4.13 *Please Login to See More
57 Santa Ana California B 6.24 *Please Login to See More
57 Santa Ana California C 6.75 *Please Login to See More
58 Corpus Christi Texas A 5.92 *Please Login to See More
58 Corpus Christi Texas B 7.31 *Please Login to See More
58 Corpus Christi Texas C 8.3 *Please Login to See More
59 Riverside California A 4.79 *Please Login to See More
59 Riverside California B 6.16 *Please Login to See More
59 Riverside California C 7.64 *Please Login to See More
60 Lexington Kentucky A 7.19 *Please Login to See More
60 Lexington Kentucky B 8.33 *Please Login to See More
60 Lexington Kentucky C 9.47 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
61 St. Louis Missouri A 4.97 *Please Login to See More
61 St. Louis Missouri B 7.73 *Please Login to See More
61 St. Louis Missouri C 13.29 *Please Login to See More
62 Stockton California A 3.84 *Please Login to See More
62 Stockton California B 5.07 *Please Login to See More
62 Stockton California C 8.84 *Please Login to See More
63 Pittsburgh Pennsylvania A 6.9 *Please Login to See More
63 Pittsburgh Pennsylvania B 6.45 *Please Login to See More
63 Pittsburgh Pennsylvania C 10.32 *Please Login to See More
64 Saint Paul Minnesota A 4.92 *Please Login to See More
64 Saint Paul Minnesota B 7.41 *Please Login to See More
64 Saint Paul Minnesota C 8.84 *Please Login to See More
65 Cincinnati Ohio A 7.65 *Please Login to See More
65 Cincinnati Ohio B 9.21 *Please Login to See More
65 Cincinnati Ohio C 12.49 *Please Login to See More
66 Anchorage Alaska A 6.63 *Please Login to See More
66 Anchorage Alaska B 7 *Please Login to See More
66 Anchorage Alaska C 8.21 *Please Login to See More
67 Henderson Nevada A 5.57 *Please Login to See More
67 Henderson Nevada B 7.19 *Please Login to See More
67 Henderson Nevada C 8.1 *Please Login to See More
68 Greensboro North Carolina A 6.47 *Please Login to See More
68 Greensboro North Carolina B 9.41 *Please Login to See More
68 Greensboro North Carolina C 12.05 *Please Login to See More
69 Plano Texas A 5.92 *Please Login to See More
69 Plano Texas B 7.1 *Please Login to See More
69 Plano Texas C 8.94 *Please Login to See More
70 Newark New Jersey A 4.75 *Please Login to See More
70 Newark New Jersey B 7.12 *Please Login to See More
70 Newark New Jersey C 9.5 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
71 Lincoln Nebraska A 6.61 *Please Login to See More
71 Lincoln Nebraska B 8.13 *Please Login to See More
71 Lincoln Nebraska C 9.03 *Please Login to See More
72 Toledo Ohio A 7.12 *Please Login to See More
72 Toledo Ohio B 8.74 *Please Login to See More
72 Toledo Ohio C 11.96 *Please Login to See More
73 Orlando Florida A 5.6 *Please Login to See More
73 Orlando Florida B 7.02 *Please Login to See More
73 Orlando Florida C 7.89 *Please Login to See More
74 Chula Vista California A 4.38 *Please Login to See More
74 Chula Vista California B 5.69 *Please Login to See More
74 Chula Vista California C 6.19 *Please Login to See More
75 Irvine California A 4.76 *Please Login to See More
75 Irvine California B 6.15 *Please Login to See More
75 Irvine California C 6.83 *Please Login to See More
76 Fort Wayne Indiana A 6.2 *Please Login to See More
76 Fort Wayne Indiana B 7.29 *Please Login to See More
76 Fort Wayne Indiana C 9.37 *Please Login to See More
77 Jersey City New Jersey A 3.09 *Please Login to See More
77 Jersey City New Jersey B 6.21 *Please Login to See More
77 Jersey City New Jersey C 7.25 *Please Login to See More
78 Durham North Carolina A 7.09 *Please Login to See More
78 Durham North Carolina B 8.04 *Please Login to See More
78 Durham North Carolina C 8.95 *Please Login to See More
79 St. Petersburg Florida A 5.06 *Please Login to See More
79 St. Petersburg Florida B 6.85 *Please Login to See More
79 St. Petersburg Florida C 9.1 *Please Login to See More
80 Laredo Texas A 6.26 *Please Login to See More
80 Laredo Texas B 8.57 *Please Login to See More
80 Laredo Texas C 11.93 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
81 Buffalo New York A 5.14 *Please Login to See More
81 Buffalo New York B 7.87 *Please Login to See More
81 Buffalo New York C 9.38 *Please Login to See More
82 Madison Wisconsin A 7.06 *Please Login to See More
82 Madison Wisconsin B 8.65 *Please Login to See More
82 Madison Wisconsin C 10.17 *Please Login to See More
83 Lubbock Texas A 4.92 *Please Login to See More
83 Lubbock Texas B 9.14 *Please Login to See More
83 Lubbock Texas C 11.08 *Please Login to See More
84 Chandler Arizona A 4.88 *Please Login to See More
84 Chandler Arizona B 7.22 *Please Login to See More
84 Chandler Arizona C 9.43 *Please Login to See More
85 Scottsdale Arizona A 4.91 *Please Login to See More
85 Scottsdale Arizona B 7.14 *Please Login to See More
85 Scottsdale Arizona C 8.91 *Please Login to See More
86 Glendale Arizona A 4.69 *Please Login to See More
86 Glendale Arizona B 6.35 *Please Login to See More
86 Glendale Arizona C 7.21 *Please Login to See More
87 Reno Nevada A 4.18 *Please Login to See More
87 Reno Nevada B 6.99 *Please Login to See More
87 Reno Nevada C 7.92 *Please Login to See More
88 Norfolk Virginia A 4.59 *Please Login to See More
88 Norfolk Virginia B 7.23 *Please Login to See More
88 Norfolk Virginia C 8.19 *Please Login to See More
89 Winston-Salem North Carolina A 6.16 *Please Login to See More
89 Winston-Salem North Carolina B 8.24 *Please Login to See More
89 Winston-Salem North Carolina C 9.2 *Please Login to See More
90 North Las Vegas Nevada A 4.9 *Please Login to See More
90 North Las Vegas Nevada B 7.24 *Please Login to See More
90 North Las Vegas Nevada C 8.33 *Please Login to See More
Rank City State Property Class Multifamily Retail Shopping Center Industrial Office Specialty
91 Irving Texas A 5.18 *Please Login to See More
91 Irving Texas B 6.42 *Please Login to See More
91 Irving Texas C 8.17 *Please Login to See More
92 Chesapeake Virginia A 5.13 *Please Login to See More
92 Chesapeake Virginia B 6.37 *Please Login to See More
92 Chesapeake Virginia C 9.18 *Please Login to See More
93 Gilbert Arizona A 5.34 *Please Login to See More
93 Gilbert Arizona B 6.82 *Please Login to See More
93 Gilbert Arizona C 9.5 *Please Login to See More
94 Hialeah Florida A 3.14 *Please Login to See More
94 Hialeah Florida B 4.61 *Please Login to See More
94 Hialeah Florida C 7.98 *Please Login to See More
95 Garland Texas A 5.6 *Please Login to See More
95 Garland Texas B 6.91 *Please Login to See More
95 Garland Texas C 8.73 *Please Login to See More
96 Fremont California A 3.94 *Please Login to See More
96 Fremont California B 5.28 *Please Login to See More
96 Fremont California C 7.35 *Please Login to See More
97 Baton Rouge Louisiana A 6.15 *Please Login to See More
97 Baton Rouge Louisiana B 9.82 *Please Login to See More
97 Baton Rouge Louisiana C 13.59 *Please Login to See More
98 Richmond Virginia A 5.17 *Please Login to See More
98 Richmond Virginia B 7.03 *Please Login to See More
98 Richmond Virginia C 9.66 *Please Login to See More
99 Boise Idaho A 4.84 *Please Login to See More
99 Boise Idaho B 7.19 *Please Login to See More
99 Boise Idaho C 8.77 *Please Login to See More
100 San Bernardino California A 5.14 *Please Login to See More
100 San Bernardino California B 7.1 *Please Login to See More
100 San Bernardino California C 8.18 *Please Login to See More