CBRE presents its semiannual U.S. Cap Rate Survey H1 2018 Advance Review – a snapshot of CRE cap rates across the U.S. 

  • U.S. cap rates remained broadly stable in H1 2018, except for certain retail segments and the industrial sector.
  • The industrial sector remains blisteringly hot, with cap rates falling by 10 basis points (bps) on average and 17 bps for Class B product.
  • In the retail sector, power centers saw an average cap rate increase of 26 bps, neighborhood centers increased by 9 bps and high streets were stable.
  • Multifamily, office and hotel cap rates were stable.
  • The average cap rate spread over the 10-year Treasury fell by 42 bps. Spreads were lowest for high-street retail and highest for suburban hotel.

CBRE Capital Markets, Valuation & Advisory Services and Research professionals who participate in this survey provide cap-rate ranges based on personal experience with active investors in their markets. The final report, with summary tables, analysis and maps for all property types in major markets, will be published in mid-August.