Cap Rates
Mid- and high-rise apartment properties traded at the lowest cap rates. For the last three months of 2016, mid- and high-rise apartments decreased by 21.7 basis points.
- Mar 21, 2017
National cap rate performance, based on properties and portfolios of $2.5 million and greater
Source: Real Capital Analytics Inc.
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).