Commercial Real Estate Cap Rate Comparison
Compare cap rates across commercial asset classes side-by-side. Benchmark against 10-year Treasury to measure risk premium. Higher cap rate = higher risk OR better deal — depends on asset quality.
| Property A cap rate | — |
| Property A spread over Treasury | — |
| Property A asset-class benchmark | — |
| Property B cap rate | — |
| Property B spread over Treasury | — |
| Property B asset-class benchmark | — |
| Risk-adjusted winner | — |
Cap rate = NOI / price. It's the single most important commercial real estate metric — it's the unleveraged annual yield. Compare cap rates across asset classes to find value. Benchmark against 10-year Treasury (risk-free rate) to measure risk premium. Healthy spread: 250-400 basis points. Below 200 = priced like bonds, no margin for execution risk.
2026 Cap Rate Benchmarks by Asset Class
Per CBRE/JLL 2026 surveys: Multifamily 5.0-6.0% (Class A urban tighter, Class B/C suburban higher). Industrial 5.0-6.5% (logistics/distribution centers tightest). Self-storage 5.5-7.0%. Retail strip 7.0-8.5% (grocery-anchored tighter). Office 7.0-9.0% — heavy stress in CBDs post-WFH, suburban Class A holds 6.5-7.5%. Hotel 8.0-10.0% (highest volatility).
Spread Analysis Beats Absolute Cap Rate
A 5% cap multifamily looks expensive vs an 8% cap retail — but if the multifamily has 30-year tenants and the retail has rolling 3-year leases with chain-restaurant exposure, the multifamily is actually safer. Always compare cap rate spread over 10-year Treasury. Healthy commercial spread is 250-400 bps. Spreads below 200 bps mean the property is priced like a risk-free bond — you're paying for safety. Spreads above 500 bps mean the market sees default or vacancy risk.
Last updated May 2026. Sources: CBRE Cap Rate Survey.