Cap Rate Analysis
Benchmark NNN property cap rates by sector, analyze market trends, and understand valuation dynamics in today's real estate market.
Cap Rates by Property Type
| Property Type | Cap Rate | Trend | QoQ Change | Volume |
|---|---|---|---|---|
| Retail (NNN) | 5.85% | trending_down | -15 bps | High |
| Industrial/Logistics | 5.45% | trending_down | -25 bps | Very High |
| Office | 7.20% | trending_up | +45 bps | Moderate |
| Medical/Healthcare | 5.90% | trending_down | -10 bps | High |
| Hospitality | 8.10% | trending_up | +35 bps | Low |
| Multi-Family/Apartments | 5.75% | trending_down | -20 bps | Very High |
| Data Centers | 4.85% | trending_down | -40 bps | Moderate |
Market Dynamics
Cap Rate Compression
Industrial and NNN retail properties experiencing compression as institutional capital competes for stable, long-term income streams. Core assets particularly active.
Cap Rate Expansion
Office and hospitality cap rates expanding due to uncertainty and changing macro conditions. Value-add opportunities for those with capital and conviction.
Spread Dynamics
CRE cap rates tracking 10-year Treasury yields with typical 200-350 bps spread. Historical spreads widening indicating risk premium increase.
Cap Rates vs. Risk-Free Rate
Cap Rate Spread Analysis: The difference between a property's cap rate and the 10-year Treasury yield represents the premium investors demand for real estate risk. This spread has historically ranged from 150-400 basis points, with wider spreads indicating:
- Higher perceived risk in CRE markets
- Reduced institutional capital availability
- Increased borrowing costs and reduced leverage
- More attractive entry points for patient capital
Cap Rate Calculator
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