Cap Rates by Property Type: Current Ranges for Every Sector
Cap rates by property type, from ground leases near 4.5% to hotels near 8.5%. Current survey figures for multifamily, industrial, retail, office, storage and more.
By the CapRateCalculator.co team
Cap rates by property type run from about 4.5% for premium ground leases to around 8.5% for hotels, with office spread across the widest range of all. The table below collects the most recent survey figures for each sector. Lower cap rates mean buyers pay more for each dollar of income, usually because the income is steadier or expected to grow.
Cap rates by property type: the current figures
| Property type | Cap rate | Source |
|---|---|---|
| Ground lease (top QSR brands) | 4.45% asking | Boulder Group, Q2 2026 |
| Multifamily | 5.75% average | Northmarq, H1 2026 |
| Industrial, Class A | 4.75% to 7.0% across markets | CBRE, H2 2025 |
| Mobile home park | 5.9% average | Northmarq, H1 2025 |
| Student housing | 5.5% to 6.5% | Capright, Sept 2026 |
| Data center, Class A | 10-year Treasury plus 1.0 to 1.5 points | CBRE, H2 2025 |
| Retail, Class A neighborhood center | 4.5% to 7.75% across markets | CBRE, H2 2025 |
| Car wash (net lease) | 6.21% asking | B+E via Raymond James, April 2026 |
| Self storage | 6.59% average | Marcus & Millichap, 2026 |
| Senior housing | 5.97% to 8.32% by care level and class | BBG, spring 2026 |
| Net lease, all single-tenant | 6.92% median asking | Boulder Group, Q3 2026 |
| Medical office | 7.1% average | CBRE, Q2 2026 |
| Office, Class A downtown | 5.5% to 14.0% across markets | CBRE, H2 2025 |
| Hotel | 8.0% to 8.7% | HVS and USRC, 2026 |
Ranges marked “across markets” are the lowest and highest market in the survey, not a national average. Asking cap rates come from listings and usually run 25 to 50 basis points below closed deals.
Why cap rates differ by property type
Three things explain most of the spread.
Lease length and tenant. A ground lease or net lease to a national company is close to a bond. A hotel rents rooms by the night. The longer and stronger the income, the lower the cap rate.
Operating intensity. Hotels, senior housing and self storage are operating businesses where staffing, pricing and marketing drive income. More operating risk means a higher cap rate.
Demand outlook. Industrial and multifamily benefited from strong demand and trade low. Office demand fell with hybrid work, and its cap rates spread out the most.
Commercial vs residential cap rates
Small residential rentals are not covered by these surveys. Most US single-family rentals trade between about 4% and 8% depending on the market. The commercial vs residential cap rates guide explains the difference, and the what is a good cap rate guide covers residential bands.
Using a property type cap rate
A survey figure is a starting point. Rebuild your property’s NOI with realistic expenses, then compare its cap rate with recent local sales of the same type. The market cap rate guide shows how, and the cap rate calculator turns NOI into a value at any rate.
Cap rates were moving in different directions in 2026. Retail, industrial, hotel and senior housing surveys showed compression early in the year, while net lease asking cap rates rose in the third quarter as Treasury yields climbed. Check the date on any figure before relying on it.
Frequently asked questions
Which property type has the lowest cap rate?
Ground leases to top restaurant brands, at about 4.45% asking in mid-2026 per the Boulder Group. Among multi-tenant property, Class A multifamily, retail and industrial in the most expensive markets come next, at about 4.25% to 4.75% in CBRE's survey.
Which property type has the highest cap rate?
Hotels have the highest typical cap rates of the major sectors, about 8% to 8.7% in 2026 surveys. Office has the widest range, from 5.5% in the strongest downtowns to 14% in the weakest, so individual office buildings can trade higher than any hotel.
Why do cap rates differ by property type?
Cap rates reflect risk and expected growth. Long leases to strong tenants, low capital needs and steady demand mean lower cap rates. Short leases, heavy operating costs, volatile demand or expensive re-leasing mean higher ones.