What CAP rates are you seeing across the nation?

[Account Closed]

Hey BP,

Here in California, deals I am underwriting (usually 80+ units) are seeing 4.35 to 5.5 on the top end. Out of curiosity, what are you seeing in your cities of investment?

[Brian Burke]

Cap rates range by property class, metro and submarket so we are seeing a range of cap rates.  Then again we are underwriting A, B and C deals in several states.  That said, I'm seeing as low as 4% for class A product in core CA markets, 5-5.5% for B product in Phoenix, Atlanta, Houston and Central Florida; and 5.5% to 6% for B- to C+ properties in those markets.

CBRE puts out a great cap rate study twice per year--you should get a copy if you are looking at multiple markets.  It will show cap ranges in each major market for each class of property.  Great resource.