Cap Rates in Wilmington, Delaware

[Scott Lewis]

Fellow BP members and real estate investors,

I’m interested your opinions on what typical cap rate (ranges, medians, or both) are for class A, B, C, and D property locations (and corresponding building quality for the sake of simplicity) in Wilmington, Delaware. The only information I’ve found online so far is for Philadelphia, which is understandable given its size, but I know it’s much different from Wilmington. One interesting aspect of cap rates is that real estate investors, as a whole, determine these cap rates, so we all contribute to the cap rates in our target investment areas. Just a thought.

When I run the numbers on a property, I tend to be on the conservative side, so I am (hopefully) coming up with cap rates on the low side. Your thoughts on any type of property would be useful, especially small multifamily properties. Thanks in advance.

- Scott