Retail Cap Rates: Shopping Centers and Single-Tenant Retail
Class A neighborhood center cap rates range from 4.5% to 7.75% across US markets in CBRE's survey, and single-tenant retail averages about 6.7%. What drives each.
By the CapRateCalculator.co team
Retail cap rates depend on the format. For stabilized Class A neighborhood centers, CBRE’s second-half 2025 survey shows a range of 4.5% to 7.75% across 53 US markets. Single-tenant net lease retail, a single store on a long lease, had a median asking cap rate of 6.69% in the Boulder Group’s third-quarter 2026 report.
Retail cap rates by format
| Format | Cap rate | Source |
|---|---|---|
| Class A neighborhood center, stabilized | 4.5% to 7.75% across markets | CBRE, H2 2025 |
| Single-tenant net lease retail | 6.69% median asking | Boulder Group, Q3 2026 |
The CBRE range is the lowest and highest market quoted, not a national average. The low end is the most expensive coastal markets, the high end smaller and slower ones.
Which way retail cap rates are moving
Neighborhood retail compressed more than any other sector in CBRE’s first-half 2026 survey. Green Street saw strip center cap rates fall about 15 basis points in the first quarter of 2026 and power centers 30 to 40 basis points. Net lease was the exception: Boulder reported asking cap rates rising for a second straight quarter as Treasury yields climbed.
Value at retail cap rates
| Cap rate | Value of $1,200,000 NOI |
|---|---|
| 4.50% | $26,667,000 |
| 6.69% | $17,937,000 |
| 7.75% | $15,484,000 |
What moves a retail property’s cap rate
Anchor tenant. Grocery-anchored centers draw daily traffic and trade at the low end. Centers anchored by a struggling department store trade at the high end, or for land value.
Tenant credit and lease term. In single-tenant retail, a national tenant with years left on the lease is priced almost like a bond. The net lease cap rates guide covers that market.
Rollover. Multi-tenant centers with many leases expiring soon carry re-leasing risk and tenant improvement costs.
Location within the market. Visibility, traffic counts and parking matter more to retail than to most property types.
See cap rates by property type for the full comparison, or the market cap rate guide for checking a survey against local sales.
Sources: CBRE U.S. Cap Rate Survey H2 2025; The Boulder Group, Net Lease Market Report Q3 2026.
Frequently asked questions
What is the average cap rate for retail property?
It depends on the format. CBRE's survey puts stabilized Class A neighborhood centers between 4.5% and 7.75% across 53 US markets. The Boulder Group puts single-tenant net lease retail at a median asking cap rate of 6.69% in the third quarter of 2026.
Are retail cap rates going up or down?
Neighborhood retail compressed more than any other sector in CBRE's first-half 2026 survey, and Green Street saw strip center rates fall about 15 basis points in early 2026. Net lease asking cap rates, on the other hand, rose in the third quarter of 2026 as interest rates climbed.
Why do grocery-anchored centers trade at lower cap rates?
A grocery store brings shoppers several times a week, which supports the smaller tenants around it and is hard to replace with online shopping. Buyers treat that traffic as lower risk and pay more for each dollar of income.