Cap Rate by Largest Cities in the US


Below is our estimate of the Cap Rate for different property types (Single-Family, Multi-Family, Retail, Industrial, Office, and Specialty) 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 property’s asset value is often the asking sales price for the property or the purchase price the investor is expecting to pay for the property. To learn more visit, What is Cap Rate?

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 a desirable location compared to Class A properties. There can be different combinations of these scenarios where a lower quality property may be located in a highly desirable area, or where a property is in a 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 assets are residential properties comprised of multiple separate housing units within the same building or a complex. Although duplex, triplex and 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.

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, racetrack, retirement community, skating rink, swimming pool, theater, and concert hall.

The table below is updated frequently; last update happened on 2023-01-14

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

Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
1 New York New York A 4.78 *Membership needed, learn more.
1 New York New York B 6.15 *Membership needed, learn more.
1 New York New York C N/A *Membership needed, learn more.
2 Los Angeles California A 4.26 *Membership needed, learn more.
2 Los Angeles California B 6.22 *Membership needed, learn more.
2 Los Angeles California C 11.99 *Membership needed, learn more.
3 Chicago Illinois A 2.27 *Membership needed, learn more.
3 Chicago Illinois B 6.91 *Membership needed, learn more.
3 Chicago Illinois C 10.83 *Membership needed, learn more.
4 Houston Texas A N/A *Membership needed, learn more.
4 Houston Texas B 7.70 *Membership needed, learn more.
4 Houston Texas C 9.00 *Membership needed, learn more.
5 Phoenix Arizona A 5.00 *Membership needed, learn more.
5 Phoenix Arizona B 7.17 *Membership needed, learn more.
5 Phoenix Arizona C 9.78 *Membership needed, learn more.
6 Philadelphia Pennsylvania A N/A *Membership needed, learn more.
6 Philadelphia Pennsylvania B 6.55 *Membership needed, learn more.
6 Philadelphia Pennsylvania C 10.36 *Membership needed, learn more.
7 San Antonio Texas A N/A *Membership needed, learn more.
7 San Antonio Texas B 8.00 *Membership needed, learn more.
7 San Antonio Texas C 12.34 *Membership needed, learn more.
8 San Diego California A 4.78 *Membership needed, learn more.
8 San Diego California B 6.06 *Membership needed, learn more.
8 San Diego California C N/A *Membership needed, learn more.
9 Dallas Texas A 5.00 *Membership needed, learn more.
9 Dallas Texas B 6.52 *Membership needed, learn more.
9 Dallas Texas C 13.33 *Membership needed, learn more.
10 San Jose California A 3.00 *Membership needed, learn more.
10 San Jose California B 6.50 *Membership needed, learn more.
10 San Jose California C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
11 Austin Texas A 5.00 *Membership needed, learn more.
11 Austin Texas B N/A *Membership needed, learn more.
11 Austin Texas C N/A *Membership needed, learn more.
12 Jacksonville Florida A 5.00 *Membership needed, learn more.
12 Jacksonville Florida B 7.43 *Membership needed, learn more.
12 Jacksonville Florida C 11.67 *Membership needed, learn more.
13 San Francisco California A N/A *Membership needed, learn more.
13 San Francisco California B 5.99 *Membership needed, learn more.
13 San Francisco California C N/A *Membership needed, learn more.
14 Columbus Ohio A N/A *Membership needed, learn more.
14 Columbus Ohio B 6.60 *Membership needed, learn more.
14 Columbus Ohio C 13.00 *Membership needed, learn more.
15 Indianapolis Indiana A 2.85 *Membership needed, learn more.
15 Indianapolis Indiana B 8.00 *Membership needed, learn more.
15 Indianapolis Indiana C 12.49 *Membership needed, learn more.
16 Fort Worth Texas A N/A *Membership needed, learn more.
16 Fort Worth Texas B 6.32 *Membership needed, learn more.
16 Fort Worth Texas C 10.14 *Membership needed, learn more.
17 Charlotte North Carolina A N/A *Membership needed, learn more.
17 Charlotte North Carolina B 8.00 *Membership needed, learn more.
17 Charlotte North Carolina C 10.00 *Membership needed, learn more.
18 Seattle Washington A 4.14 *Membership needed, learn more.
18 Seattle Washington B 6.16 *Membership needed, learn more.
18 Seattle Washington C N/A *Membership needed, learn more.
19 Denver Colorado A 3.50 *Membership needed, learn more.
19 Denver Colorado B 6.94 *Membership needed, learn more.
19 Denver Colorado C 9.67 *Membership needed, learn more.
20 El Paso Texas A N/A *Membership needed, learn more.
20 El Paso Texas B N/A *Membership needed, learn more.
20 El Paso Texas C 13.00 *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
21 Washington DC A N/A *Membership needed, learn more.
21 Washington DC B N/A *Membership needed, learn more.
21 Washington DC C N/A *Membership needed, learn more.
22 Boston Massachusetts A N/A *Membership needed, learn more.
22 Boston Massachusetts B 6.70 *Membership needed, learn more.
22 Boston Massachusetts C N/A *Membership needed, learn more.
23 Detroit Michigan A 2.10 *Membership needed, learn more.
23 Detroit Michigan B N/A *Membership needed, learn more.
23 Detroit Michigan C 15.55 *Membership needed, learn more.
24 Nashville Tennessee A N/A *Membership needed, learn more.
24 Nashville Tennessee B 7.42 *Membership needed, learn more.
24 Nashville Tennessee C 11.33 *Membership needed, learn more.
25 Memphis Tennessee A 3.75 *Membership needed, learn more.
25 Memphis Tennessee B 7.00 *Membership needed, learn more.
25 Memphis Tennessee C 12.98 *Membership needed, learn more.
26 Portland Oregon A N/A *Membership needed, learn more.
26 Portland Oregon B 6.33 *Membership needed, learn more.
26 Portland Oregon C 11.00 *Membership needed, learn more.
27 Oklahoma City Oklahoma A N/A *Membership needed, learn more.
27 Oklahoma City Oklahoma B N/A *Membership needed, learn more.
27 Oklahoma City Oklahoma C 10.35 *Membership needed, learn more.
28 Las Vegas Nevada A N/A *Membership needed, learn more.
28 Las Vegas Nevada B 7.33 *Membership needed, learn more.
28 Las Vegas Nevada C 9.27 *Membership needed, learn more.
29 Louisville Kentucky A N/A *Membership needed, learn more.
29 Louisville Kentucky B N/A *Membership needed, learn more.
29 Louisville Kentucky C 11.75 *Membership needed, learn more.
30 Baltimore Maryland A N/A *Membership needed, learn more.
30 Baltimore Maryland B 7.00 *Membership needed, learn more.
30 Baltimore Maryland C 10.00 *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
31 Milwaukee Wisconsin A N/A *Membership needed, learn more.
31 Milwaukee Wisconsin B N/A *Membership needed, learn more.
31 Milwaukee Wisconsin C 10.00 *Membership needed, learn more.
32 Albuquerque New Mexico A N/A *Membership needed, learn more.
32 Albuquerque New Mexico B 7.80 *Membership needed, learn more.
32 Albuquerque New Mexico C 9.88 *Membership needed, learn more.
33 Tucson Arizona A 2.95 *Membership needed, learn more.
33 Tucson Arizona B 7.07 *Membership needed, learn more.
33 Tucson Arizona C 9.58 *Membership needed, learn more.
34 Fresno California A N/A *Membership needed, learn more.
34 Fresno California B 7.51 *Membership needed, learn more.
34 Fresno California C 9.33 *Membership needed, learn more.
35 Sacramento California A N/A *Membership needed, learn more.
35 Sacramento California B 6.10 *Membership needed, learn more.
35 Sacramento California C 9.20 *Membership needed, learn more.
36 Mesa Arizona A 2.20 *Membership needed, learn more.
36 Mesa Arizona B 7.29 *Membership needed, learn more.
36 Mesa Arizona C 8.79 *Membership needed, learn more.
37 Kansas City Missouri A 2.23 *Membership needed, learn more.
37 Kansas City Missouri B 8.00 *Membership needed, learn more.
37 Kansas City Missouri C 10.55 *Membership needed, learn more.
38 Atlanta Georgia A 2.35 *Membership needed, learn more.
38 Atlanta Georgia B 7.15 *Membership needed, learn more.
38 Atlanta Georgia C 11.76 *Membership needed, learn more.
39 Long Beach California A 4.67 *Membership needed, learn more.
39 Long Beach California B 5.36 *Membership needed, learn more.
39 Long Beach California C N/A *Membership needed, learn more.
40 Colorado Springs Colorado A N/A *Membership needed, learn more.
40 Colorado Springs Colorado B 7.26 *Membership needed, learn more.
40 Colorado Springs Colorado C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
41 Raleigh North Carolina A N/A *Membership needed, learn more.
41 Raleigh North Carolina B N/A *Membership needed, learn more.
41 Raleigh North Carolina C N/A *Membership needed, learn more.
42 Miami Florida A 4.52 *Membership needed, learn more.
42 Miami Florida B 7.30 *Membership needed, learn more.
42 Miami Florida C 10.73 *Membership needed, learn more.
43 Virginia Beach Virginia A 5.00 *Membership needed, learn more.
43 Virginia Beach Virginia B N/A *Membership needed, learn more.
43 Virginia Beach Virginia C N/A *Membership needed, learn more.
44 Omaha Nebraska A N/A *Membership needed, learn more.
44 Omaha Nebraska B 7.71 *Membership needed, learn more.
44 Omaha Nebraska C 12.00 *Membership needed, learn more.
45 Oakland California A N/A *Membership needed, learn more.
45 Oakland California B 7.00 *Membership needed, learn more.
45 Oakland California C N/A *Membership needed, learn more.
46 Minneapolis Minnesota A N/A *Membership needed, learn more.
46 Minneapolis Minnesota B 7.80 *Membership needed, learn more.
46 Minneapolis Minnesota C N/A *Membership needed, learn more.
47 Tulsa Oklahoma A 3.00 *Membership needed, learn more.
47 Tulsa Oklahoma B N/A *Membership needed, learn more.
47 Tulsa Oklahoma C 11.00 *Membership needed, learn more.
48 Arlington Texas A N/A *Membership needed, learn more.
48 Arlington Texas B N/A *Membership needed, learn more.
48 Arlington Texas C 9.75 *Membership needed, learn more.
49 New Orleans Louisiana A N/A *Membership needed, learn more.
49 New Orleans Louisiana B N/A *Membership needed, learn more.
49 New Orleans Louisiana C 11.34 *Membership needed, learn more.
50 Wichita Kansas A N/A *Membership needed, learn more.
50 Wichita Kansas B N/A *Membership needed, learn more.
50 Wichita Kansas C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
51 Cleveland Ohio A N/A *Membership needed, learn more.
51 Cleveland Ohio B 8.00 *Membership needed, learn more.
51 Cleveland Ohio C 11.49 *Membership needed, learn more.
52 Tampa Florida A 2.10 *Membership needed, learn more.
52 Tampa Florida B 7.49 *Membership needed, learn more.
52 Tampa Florida C 11.99 *Membership needed, learn more.
53 Bakersfield California A N/A *Membership needed, learn more.
53 Bakersfield California B 5.92 *Membership needed, learn more.
53 Bakersfield California C 12.06 *Membership needed, learn more.
54 Aurora Colorado A N/A *Membership needed, learn more.
54 Aurora Colorado B 6.94 *Membership needed, learn more.
54 Aurora Colorado C 9.64 *Membership needed, learn more.
55 Honolulu Hawaii A 4.85 *Membership needed, learn more.
55 Honolulu Hawaii B N/A *Membership needed, learn more.
55 Honolulu Hawaii C N/A *Membership needed, learn more.
56 Anaheim California A N/A *Membership needed, learn more.
56 Anaheim California B 6.50 *Membership needed, learn more.
56 Anaheim California C 18.80 *Membership needed, learn more.
57 Santa Ana California A N/A *Membership needed, learn more.
57 Santa Ana California B 6.00 *Membership needed, learn more.
57 Santa Ana California C N/A *Membership needed, learn more.
58 Corpus Christi Texas A N/A *Membership needed, learn more.
58 Corpus Christi Texas B N/A *Membership needed, learn more.
58 Corpus Christi Texas C N/A *Membership needed, learn more.
59 Riverside California A N/A *Membership needed, learn more.
59 Riverside California B 6.01 *Membership needed, learn more.
59 Riverside California C N/A *Membership needed, learn more.
60 Lexington Kentucky A N/A *Membership needed, learn more.
60 Lexington Kentucky B 6.75 *Membership needed, learn more.
60 Lexington Kentucky C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
61 St. Louis Missouri A N/A *Membership needed, learn more.
61 St. Louis Missouri B N/A *Membership needed, learn more.
61 St. Louis Missouri C N/A *Membership needed, learn more.
62 Stockton California A N/A *Membership needed, learn more.
62 Stockton California B N/A *Membership needed, learn more.
62 Stockton California C N/A *Membership needed, learn more.
63 Pittsburgh Pennsylvania A 5.00 *Membership needed, learn more.
63 Pittsburgh Pennsylvania B 7.00 *Membership needed, learn more.
63 Pittsburgh Pennsylvania C 13.10 *Membership needed, learn more.
64 Saint Paul Minnesota A N/A *Membership needed, learn more.
64 Saint Paul Minnesota B N/A *Membership needed, learn more.
64 Saint Paul Minnesota C 9.39 *Membership needed, learn more.
65 Cincinnati Ohio A 2.13 *Membership needed, learn more.
65 Cincinnati Ohio B N/A *Membership needed, learn more.
65 Cincinnati Ohio C 12.94 *Membership needed, learn more.
66 Anchorage Alaska A N/A *Membership needed, learn more.
66 Anchorage Alaska B N/A *Membership needed, learn more.
66 Anchorage Alaska C N/A *Membership needed, learn more.
67 Henderson Nevada A N/A *Membership needed, learn more.
67 Henderson Nevada B N/A *Membership needed, learn more.
67 Henderson Nevada C N/A *Membership needed, learn more.
68 Greensboro North Carolina A N/A *Membership needed, learn more.
68 Greensboro North Carolina B 8.00 *Membership needed, learn more.
68 Greensboro North Carolina C 10.14 *Membership needed, learn more.
69 Plano Texas A N/A *Membership needed, learn more.
69 Plano Texas B N/A *Membership needed, learn more.
69 Plano Texas C N/A *Membership needed, learn more.
70 Newark New Jersey A N/A *Membership needed, learn more.
70 Newark New Jersey B 7.11 *Membership needed, learn more.
70 Newark New Jersey C 9.99 *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
71 Lincoln Nebraska A N/A *Membership needed, learn more.
71 Lincoln Nebraska B N/A *Membership needed, learn more.
71 Lincoln Nebraska C N/A *Membership needed, learn more.
72 Toledo Ohio A 3.20 *Membership needed, learn more.
72 Toledo Ohio B N/A *Membership needed, learn more.
72 Toledo Ohio C 12.00 *Membership needed, learn more.
73 Orlando Florida A N/A *Membership needed, learn more.
73 Orlando Florida B 8.00 *Membership needed, learn more.
73 Orlando Florida C 10.25 *Membership needed, learn more.
74 Chula Vista California A N/A *Membership needed, learn more.
74 Chula Vista California B 5.25 *Membership needed, learn more.
74 Chula Vista California C 12.70 *Membership needed, learn more.
75 Irvine California A N/A *Membership needed, learn more.
75 Irvine California B N/A *Membership needed, learn more.
75 Irvine California C N/A *Membership needed, learn more.
76 Fort Wayne Indiana A N/A *Membership needed, learn more.
76 Fort Wayne Indiana B N/A *Membership needed, learn more.
76 Fort Wayne Indiana C 11.85 *Membership needed, learn more.
77 Jersey City New Jersey A 5.00 *Membership needed, learn more.
77 Jersey City New Jersey B 7.00 *Membership needed, learn more.
77 Jersey City New Jersey C N/A *Membership needed, learn more.
78 Durham North Carolina A N/A *Membership needed, learn more.
78 Durham North Carolina B 7.40 *Membership needed, learn more.
78 Durham North Carolina C N/A *Membership needed, learn more.
79 St. Petersburg Florida A N/A *Membership needed, learn more.
79 St. Petersburg Florida B N/A *Membership needed, learn more.
79 St. Petersburg Florida C N/A *Membership needed, learn more.
80 Laredo Texas A N/A *Membership needed, learn more.
80 Laredo Texas B N/A *Membership needed, learn more.
80 Laredo Texas C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
81 Buffalo New York A N/A *Membership needed, learn more.
81 Buffalo New York B N/A *Membership needed, learn more.
81 Buffalo New York C 17.80 *Membership needed, learn more.
82 Madison Wisconsin A N/A *Membership needed, learn more.
82 Madison Wisconsin B N/A *Membership needed, learn more.
82 Madison Wisconsin C N/A *Membership needed, learn more.
83 Lubbock Texas A N/A *Membership needed, learn more.
83 Lubbock Texas B 6.75 *Membership needed, learn more.
83 Lubbock Texas C 13.13 *Membership needed, learn more.
84 Chandler Arizona A N/A *Membership needed, learn more.
84 Chandler Arizona B 7.04 *Membership needed, learn more.
84 Chandler Arizona C 8.98 *Membership needed, learn more.
85 Scottsdale Arizona A N/A *Membership needed, learn more.
85 Scottsdale Arizona B 6.82 *Membership needed, learn more.
85 Scottsdale Arizona C 9.20 *Membership needed, learn more.
86 Glendale Arizona A N/A *Membership needed, learn more.
86 Glendale Arizona B 6.54 *Membership needed, learn more.
86 Glendale Arizona C 9.15 *Membership needed, learn more.
87 Reno Nevada A N/A *Membership needed, learn more.
87 Reno Nevada B 6.24 *Membership needed, learn more.
87 Reno Nevada C 15.00 *Membership needed, learn more.
88 Norfolk Virginia A N/A *Membership needed, learn more.
88 Norfolk Virginia B N/A *Membership needed, learn more.
88 Norfolk Virginia C N/A *Membership needed, learn more.
89 Winston-Salem North Carolina A N/A *Membership needed, learn more.
89 Winston-Salem North Carolina B N/A *Membership needed, learn more.
89 Winston-Salem North Carolina C 13.33 *Membership needed, learn more.
90 North Las Vegas Nevada A 5.00 *Membership needed, learn more.
90 North Las Vegas Nevada B 8.00 *Membership needed, learn more.
90 North Las Vegas Nevada C N/A *Membership needed, learn more.
Rank City State Property Class Single-Family Multi-Family Retail Office Industrial Specialty
91 Irving Texas A N/A *Membership needed, learn more.
91 Irving Texas B N/A *Membership needed, learn more.
91 Irving Texas C N/A *Membership needed, learn more.
92 Chesapeake Virginia A N/A *Membership needed, learn more.
92 Chesapeake Virginia B N/A *Membership needed, learn more.
92 Chesapeake Virginia C N/A *Membership needed, learn more.
93 Gilbert Arizona A N/A *Membership needed, learn more.
93 Gilbert Arizona B 6.43 *Membership needed, learn more.
93 Gilbert Arizona C N/A *Membership needed, learn more.
94 Hialeah Florida A N/A *Membership needed, learn more.
94 Hialeah Florida B 6.68 *Membership needed, learn more.
94 Hialeah Florida C 9.65 *Membership needed, learn more.
95 Garland Texas A N/A *Membership needed, learn more.
95 Garland Texas B N/A *Membership needed, learn more.
95 Garland Texas C N/A *Membership needed, learn more.
96 Fremont California A N/A *Membership needed, learn more.
96 Fremont California B N/A *Membership needed, learn more.
96 Fremont California C N/A *Membership needed, learn more.
97 Baton Rouge Louisiana A 2.00 *Membership needed, learn more.
97 Baton Rouge Louisiana B N/A *Membership needed, learn more.
97 Baton Rouge Louisiana C 10.65 *Membership needed, learn more.
98 Richmond Virginia A 2.55 *Membership needed, learn more.
98 Richmond Virginia B N/A *Membership needed, learn more.
98 Richmond Virginia C 12.17 *Membership needed, learn more.
99 Boise Idaho A N/A *Membership needed, learn more.
99 Boise Idaho B 8.00 *Membership needed, learn more.
99 Boise Idaho C 10.00 *Membership needed, learn more.
100 San Bernardino California A N/A *Membership needed, learn more.
100 San Bernardino California B 7.00 *Membership needed, learn more.
100 San Bernardino California C 9.50 *Membership needed, learn more.

Last updated: 2023-01-14 - v0.8