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suburban neighborhood in Austin

What is a Good Cap Rate for an Investment Property?

[Updated: Nov 16, 2020 ] Oct 17, 2019 by Matt Frankel, CFP
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how to calculate cap rate

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Property Type Average Cap Rate
Office (urban) 6.67%
Office (suburban) 7.91%
Industrial 6.27%
Retail (neighborhood) 7.48%
Multifamily (urban) 5.20%
Multifamily (suburban) 5.49%
Hotel (urban) 8.01%
Hotel (suburban) 8.55%

Data Source: CBRE 1H19 North America Cap Rate Survey.