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Cap Rate Database by Metro

Benchmark cap rates for 10 major US metros across multifamily, industrial, and retail asset classes. Use these as reference points when setting your exit cap rate assumptions.

Last updated: May 2025 · Sources: FRED, HUD, CoStar research, CBRE Cap Rate Survey · Reference data only — verify with local brokers before underwriting.

Disclaimer: Cap rates are estimates based on publicly available data and research surveys. They represent market mid-points and can vary significantly by submarket, asset quality, vintage, and specific lease structure. Always verify cap rates with local brokers and recent comparable transactions before using in an acquisition model.
Metro Multifamily (MF) Industrial Retail YoY Rent Growth (MF) Trend
Phoenix, AZ 5.40% 6.10% 6.80% +3.2% → Stable
Dallas–Fort Worth, TX 5.20% 5.90% 6.50% +2.8% → Stable
Atlanta, GA 5.50% 6.00% 7.00% +2.4% → Stable
Nashville, TN 5.60% 6.20% 7.10% +1.1% ↓ Softening
Charlotte, NC 5.30% 6.10% 6.90% +2.6% → Stable
Austin, TX 5.80% 6.30% 7.20% −1.4% ↓ Softening
Denver, CO 5.50% 6.40% 7.30% +0.8% ↓ Softening
Miami, FL 5.00% 6.20% 6.60% +3.8% ↑ Tightening
Los Angeles, CA 4.60% 5.50% 5.90% +2.1% → Stable
Chicago, IL 5.70% 6.50% 7.50% +1.5% → Stable
National MF average
5.46%
vs. 5.12% a year ago
National Industrial avg
6.13%
vs. 5.80% a year ago
10-yr Treasury (May '25)
4.42%
MF spread: ~100bps

How to use this data in your underwriting

Cap rate benchmarks serve two purposes in an acquisition model:

  1. Going-in pricing sanity check. If you're buying a Phoenix multifamily at a 4.2% cap rate, you need to explain why — new construction quality, significant rent upside, or a specific value-add thesis — because the market trades at 5.4%.
  2. Exit cap rate assumption. Your exit cap is the single most sensitive variable in your IRR. Use the current benchmark as a starting point, then apply a 25–75bps premium to account for aging of the asset and cap rate expansion risk over the hold period. Run a sensitivity grid: what happens if the market moves 100bps against you?

Use live FRED data in your underwrite

REDealIQ's Market Comps view pulls live cap rate data from the Federal Reserve (FRED), HUD, and Zillow Research for your specific market. Set your exit cap with real benchmarks, not guesses.

Open Market Comps →