Market Data
Florida Commercial Real Estate Cap Rates 2026
Cap rates by asset class and market across Florida — updated for 2026. NNN retail, industrial, multifamily, IOS, and medical office across primary, secondary, and tertiary markets.
Data sourced from closed transactions, broker market surveys, and CBRE/CoStar research. Ranges reflect stabilized assets; value-add and distressed assets trade outside these ranges.
Florida Cap Rates by Asset Class
Primary = Orlando, Tampa. Secondary = Space Coast, Lakeland, Jacksonville, Daytona. Tertiary = Ocala, Panhandle, rural markets.
| Asset Class | Primary | Secondary | Tertiary |
|---|---|---|---|
| NNN Single-Tenant Retail Tighter for investment-grade tenants (Dollar General, AutoZone, Chick-fil-A). 10–20 year lease terms compress to 5.0%–5.5%. | 5.0% – 6.0% | 5.75% – 6.75% | 6.25% – 7.5%+ |
| Anchored Strip Center Grocery-anchored centers in primary markets can trade below 5.75%. National anchor quality drives the range. | 5.75% – 6.75% | 6.25% – 7.25% | 6.75% – 7.75% |
| Unanchored Strip Center Multi-tenant strip centers are higher-management assets. Cap rates reflect leasing risk and management intensity. | 6.25% – 7.25% | 6.75% – 7.75% | 7.0% – 8.5%+ |
| Industrial / Warehouse Single-tenant credit distribution centers at the tight end. Multi-tenant flex and functional obsolescence widen caps. | 5.5% – 6.5% | 6.0% – 7.0% | 6.5% – 7.75% |
| Industrial Outdoor Storage (IOS) Stabilized, paved IOS with utilities commands tighter caps. Institutional demand from logistics REITs supports pricing. | 6.5% – 7.5% | 7.0% – 8.0% | 7.5% – 8.5% |
| Multifamily — Class A New construction Class A in primary Orlando compresses to 5.25%. Agency debt access improves returns at these caps. | 5.25% – 5.75% | 5.5% – 6.25% | 5.75% – 6.5% |
| Multifamily — Workforce Housing 1970s–2000s vintage garden apartments. Value-add potential allows investors to underwrite to a higher go-in cap. | 5.75% – 7.0% | 6.0% – 7.25% | 6.5% – 7.75% |
| Medical / Dental Office NNN medical office with long-term leases to health systems or physicians compresses to 5.75%–6.5%. Short remaining term widens. | 6.0% – 7.0% | 6.5% – 7.5% | 7.0% – 8.0% |
Last updated May 2026. Cap rates reflect going-in yields on stabilized acquisitions. Actual transaction caps vary based on lease term, tenant credit, property condition, and financing market conditions.
Florida Markets at a Glance
Orlando Metro
PrimaryTightest caps across all asset classes; deepest investor demand
Space Coast (Brevard)
SecondaryEmerging market; NASA/defense employment; tighter than avg secondary
Tampa / St. Pete
PrimarySecond largest FL market; tight industrial and multifamily
Lakeland / Polk County
SecondaryWidest caps in I-4 corridor; value pricing vs. primary
Jacksonville
Secondary–TertiaryWidest caps in FL; port-driven industrial can be tighter
Ocala / Marion County
TertiaryFastest-growing county; widest retail and multifamily caps
Daytona / Volusia
SecondaryI-95 + I-4 interchange; value pricing vs. Orlando
Kissimmee / Osceola
SecondaryTourism corridor; neighborhood retail at mid-6s to 7s
What Drives Cap Rates in Florida
Lease Term & Credit
A 15-year NNN lease to Dollar General compresses 75–125 bps vs. a 3-year lease to a local tenant in the same building. Investment-grade credit and long term are the two biggest cap rate drivers in net lease Florida.
Location & Market Tier
Primary market caps (Orlando, Tampa) are 50–100 bps tighter than secondary (Jacksonville, Lakeland) and 100–200 bps tighter than tertiary (Ocala, Panhandle). Highway access and population density drive the spread.
10-Year Treasury
Commercial real estate cap rates track the 10-year Treasury plus a risk premium. Rate normalization in 2023–2024 expanded Florida caps from their 2021–2022 lows. As of mid-2026, the spread is normalizing back toward historical averages.
Supply and Vacancy
Below-5% vacancy in Florida industrial drives cap compression. High multifamily supply in some submarkets (Lake Nona, downtown Orlando) has temporarily widened multifamily caps. Supply-constrained markets maintain tighter caps.
Florida Cap Rate FAQ
What are Florida commercial real estate cap rates in 2026?
Florida commercial real estate cap rates in 2026 range from 5.0% to 8.5%+ depending on asset class, location, tenant credit, and lease structure. NNN retail with investment-grade tenants: 5.0%–6.25%. Industrial/warehouse: 5.5%–7.5%. Multifamily: 5.25%–7.0%. Unanchored strip centers: 6.25%–7.5%. IOS (industrial outdoor storage): 6.5%–8.0%. Cap rates remain above their 2021–2022 lows due to rate normalization, but Florida's population growth and limited supply continue to support prices in primary markets.
How do Florida cap rates compare to other US markets?
Florida cap rates are generally 25–75 basis points wider than comparable California and Northeast assets, reflecting the after-tax return premium investors require for comparable risk. However, Florida's no state income tax effectively narrows this gap by 50–130 bps on an after-tax basis for CA, NY, and NJ investors. Industrial cap rates in Central Florida's I-4 corridor are comparable to Southeast peers (Charlotte, Nashville, Atlanta), while multifamily caps are tighter in primary Orlando than in most secondary Southeast markets.
Which Florida markets have the highest cap rates?
The highest cap rates in Florida are found in secondary and tertiary markets: Ocala/Marion County (7.0%–8.5%+ on commercial), Jacksonville (6.5%–7.5% on retail and multifamily), Daytona/Volusia (6.5%–7.5%), and the Panhandle (7.0%–8.0%+). Within Central Florida, Lakeland/Polk County offers the widest caps on strip centers and multifamily. Cap rates compress toward primary market levels in Orlando, Tampa, and the Space Coast.
What drives cap rate compression in Florida?
Florida cap rate compression is driven by: (1) population growth generating sustained occupancy demand, (2) limited industrial and retail supply in primary markets, (3) out-of-state investor demand — Florida is the #1 1031 exchange destination nationally, (4) no state income tax increasing effective after-tax returns vs. high-tax state peers, and (5) institutional capital allocation from REITs, private equity, and pension funds targeting Florida's Sunbelt growth story.
What is a good cap rate for Florida investment property?
A 'good' Florida cap rate depends on your investment strategy. Passive NNN investors accepting credit-tenant risk and 5–10 year lease terms typically accept 5.5%–6.5% on stabilized assets. Value-add and active investors targeting upside typically require 6.5%–8.0%+ to justify the execution risk. Owner-users buying with SBA financing don't always underwrite on cap rate — they're comparing all-in ownership cost to market lease rates. For 1031 exchangors seeking maximum passivity, 5.25%–6.0% on NNN or agency multifamily is typical.
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