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 average Cap Rates 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 represents median observed cap rates for arm's-length transactions of stabilized assets ($5M+) closed between Q1 2025 and Q1 2026. Primary sources include the NCREIF Property Index (NPI), Real Capital Analytics (RCA) Commercial Property Price Indices, and CBRE's North America Cap Rate Survey. Where source data conflicts, we use the NCREIF figure as the primary reference. Ranges represent the interquartile spread across reported transactions.
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
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.
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.
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.