Cap Rates

Year-over-year, the biggest cap rate growth was 19.0 basis points for industrial properties and the most significant decrease was in CBD office (-31.7 basis points).

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

*Data current through 9/30/2016. Source: Real Capital Analytics Inc., www.rcanalytics.com, 866-732-5328

*Data current through 12/31/2016.
Source: Real Capital Analytics Inc., www.rcanalytics.com, 866-732-5328

Cap rates were between 4.8 and 6.9 percent for the fourth quarter of 2016, with industrial and suburban office commanding the highest rates. Mid- and high-rise apartment properties traded at the lowest cap rates. For the last three months of 2016, CBD office and industrial cap rates increased by more than 20 basis points, while mid- and high-rise apartments decreased by 21.7 basis points. Year-over-year, the biggest cap rate growth was 19.0 basis points for industrial properties and the most significant decrease was in CBD office (-31.7 basis points).

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