What is the market capitalization rate for your area across all asset classes?
Getting tired of dealing with below par rates of return offered in the coastal market I live in and would like to get an idea of the cap rate diversity across markets and asset classes
[{"id": "fgs6pkm", "text": "Multifamily (adjusted for tax reassessment):\n\nMajor core markets: 4-4.5 caps \n\nMajor secondary markets: 4.25-4.75\n\nTertiary markets: 5.0+", "replies": [], "depth": 1}, {"id": "fgs7pue", "text": "Developer I work with targets 8+ cap adaptive reuse after rent stabilization. Usually office or retail. It\u2019s really tough, I spend 4-5 hours a day digging the market for him and most of the stuff is rejected. We\u2019re in a city of a little over a million people but growth fundamentals are strongest in the country.", "replies": [], "depth": 1}, {"id": "fgsfch1", "text": "NYC you won't find multifamily for better than 4.5 but it is a different beast as it is with it's laws. Tertiary markets like 6.5 you can find. Cap rate is so fluid though. Not sure about industrial or office. I know that solid NNN retail anywhere is going to be a 5 cap most likely.", "replies": [], "depth": 1}, {"id": "fgsfmz3", "text": "I'm buying Multifamily in the Midwest 5.5-7 6.7 cap A- - C+ class.", "replies": [], "depth": 1}, {"id": "fgsfyim", "text": "NACREIF and a bunch of others publish this data...", "replies": [{"id": "fgsn1d6", "text": "It's NCREIF with no a", "replies": [{"id": "fgsnao8", "text": "U rite", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fgsgity", "text": "I'm in Houston. Multitenant retail goes from high 5s/low 6s in the core areas and gradually moves to high 7s/low 8s in far suburbs. Industrial is about 75bps lower than that, medical office is about par with retail, office is 50pbs higher. Multifamily is on par with industrial or Maybe even a little lower depending on whether there's a value add play. I can tell you about San Antonio and Austin also if you're curious. Long story short if you're comparing the the coasts it's better here.", "replies": [], "depth": 1}, {"id": "fgsiwmp", "text": "I'm in office in a major southeastern market. We're seeing cap rates as low as 5%. Most Class A or desirable product trades somewhere between the low 5's and low 6's.", "replies": [], "depth": 1}, {"id": "fgsk891", "text": "Meh. 7ish?", "replies": [], "depth": 1}, {"id": "fgsovzs", "text": "core stablized industrial in NJ, eastern PA, and NY/NYC is 3.8-4%\n\ncore multifamily about the same\n\ncore retail at 5.5-6%\n\noffice is all over the place depending on submarket.", "replies": [], "depth": 1}, {"id": "fgt3n52", "text": "Class A/B Industrial in South Florida. 4-5 cap although we're routinely getting offers rejected at 4s and below. Lack of supply and influx of institutional capital has reduced the amount of transactions recently.", "replies": [], "depth": 1}, {"id": "fh17bqn", "text": "Northern NV multitenant commercial office- 4-6.5% on optimistic proforma estimated CAP rates but based on actuals are more like 3-5.5% with the occasional 6%+ thrown in. \n\nSingle tenant office- 4-6%\n\nMultifamily Apartment is around 3% and if you find 4% it might include a 30% \"market rate\" rent increase to determine potential revenue. Usually around 170k -220k a unit.", "replies": [], "depth": 1}, {"id": "fh8clt1", "text": "Why do you think cheaper markets will be more profitable?  If the coastal markets are selling for compressed cap rates don't you think flyover cap rates are also compressed?  The thing about the coastal markets is that rents and values always bounce up.  Not so much in other markets.", "replies": [], "depth": 1}]