Market Intelligence
Cap Rates by Asset Class 2026
Compare cap rates across NNN retail, industrial, multifamily, medical office, and more. Understand what drives each asset class and where the opportunities are.
Updated Q2 2026. Data reflects primary, secondary, and tertiary Florida markets.
Cap Rates by Asset Class
Click any asset class to see detailed market drivers and investment considerations
NNN Single-Tenant Retail
Investment-grade tenants (Dollar General, AutoZone, CVS) with 10–20 year leases. Tightest caps reflect stable cash flow and low default risk.
Primary
5.0% – 6.0%
Secondary
5.75% – 6.75%
Tertiary
6.25% – 7.5%+
Key Drivers
- •Tenant credit (BBB-/Baa3+ tightest)
- •Lease term (10+ years = lower cap)
- •Location (primary vs. tertiary)
Anchored Strip Center
Grocery-anchored, junior-anchored, or nationally-tenanted centers. Higher management intensity than single-tenant but geographic diversification reduces risk.
Primary
5.75% – 6.75%
Secondary
6.25% – 7.25%
Tertiary
6.75% – 7.75%
Key Drivers
- •Anchor tenant credit
- •Co-tenancy quality
- •Occupancy rate (95%+ preferred)
Unanchored Strip Center
Multi-tenant retail without national anchor. Requires active management; leasing risk and vacancy are higher. Best for value-add investors.
Primary
6.25% – 7.25%
Secondary
6.75% – 7.75%
Tertiary
7.0% – 8.5%+
Key Drivers
- •Occupancy and lease expiry calendar
- •Tenant mix diversity
- •Management capability
Industrial / Warehouse
Single-tenant, last-mile, or multi-tenant flex warehouses. Supply-constrained in primary markets (low 4% vacancy) = tight caps. Multi-tenant = higher cap.
Primary
5.5% – 6.5%
Secondary
6.0% – 7.0%
Tertiary
6.5% – 7.75%
Key Drivers
- •Supply/demand balance
- •Lease term and tenant credit
- •Functional obsolescence risk
Industrial Outdoor Storage (IOS)
Paved, stabilized outdoor storage. Institutional logistics REITs drive demand. Specialized asset class; higher yields than class-A industrial.
Primary
6.5% – 7.5%
Secondary
7.0% – 8.0%
Tertiary
7.5% – 8.5%
Key Drivers
- •Market accessibility
- •Paving/utilities in place
- •Logistics hub proximity
Multifamily — Class A
New construction or well-maintained 2010+. High rents, strong occupancy, institutional-grade. Agency financing widely available.
Primary
5.25% – 5.75%
Secondary
5.5% – 6.25%
Tertiary
5.75% – 6.5%
Key Drivers
- •Location and rental rate
- •Occupancy (95%+)
- •Financing available (agency debt)
Multifamily — Workforce Housing
1970s–2000s vintage garden apartments. Value-add potential; moderate rent growth but lower acquisition cost. Sweet spot for cap rate + upside.
Primary
5.75% – 7.0%
Secondary
6.0% – 7.25%
Tertiary
6.5% – 7.75%
Key Drivers
- •Rent growth potential
- •Renovation scope
- •Market absorption
Medical / Dental Office
NNN to health systems or physicians; long-term leases stabilize cash flow. Growing demand from aging population. Lower default risk than retail.
Primary
6.0% – 7.0%
Secondary
6.5% – 7.5%
Tertiary
7.0% – 8.0%
Key Drivers
- •Tenant type (health system vs. independent)
- •Lease term
- •Local health demand trends
Class B Office
Older office (1990s–2000s). Softness in office market; many submarkets oversupplied. Defensive positioning critical; remote work impacts demand.
Primary
6.25% – 7.25%
Secondary
6.75% – 7.75%
Tertiary
7.0% – 8.5%
Key Drivers
- •Occupancy rate
- •Tenant credit
- •Post-pandemic viability
Quick Asset Comparison
| Asset Class | Avg Primary Cap | Mgmt Intensity | Risk Profile |
|---|---|---|---|
| NNN Retail | 5.5% | Passive | Low–Moderate |
| Industrial | 6.0% | Moderate | Low–Moderate |
| IOS | 7.5% | Moderate | Moderate |
| Multifamily Class A | 5.5% | Moderate | Low–Moderate |
| Multifamily Workforce | 6.4% | Active | Moderate |
| Medical Office | 6.5% | Passive–Moderate | Low |
| Class B Office | 7.0% | Active | Moderate–High |
Investor Playbook
Passive Income (1031, REIT buyer)
NNN retail (5.0%–6.5%) with investment-grade tenants, 15+ year leases. Medical office also strong. Avoid office and value-add.
Yield-Focused (5–7% return)
Industrial or anchored strip (6.0%–7.0%); anchored provides tenant buffer. Requires basic market knowledge.
Value-Add (7–12%+ IRR)
Workforce multifamily (6.0%–7.25% in-cap), unanchored strip, or B-grade office. Add rents, reduce vacancies, reposition.
Opportunistic (10%+ IRR)
Distressed assets, non-prime tenants, significant capex needed. Requires operational expertise and active management.
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