| Market | Bulk Distribution (Class A) | Multi-Tenant Flex | Cold Storage | Last-Mile / Urban | Trend |
|---|---|---|---|---|---|
| Inland Empire, CA | 4.50–5.00% | 5.75–6.50% | 5.00–5.75% | 4.00–4.75% | → Stable |
| New Jersey / NYC Metro | 4.75–5.25% | 5.75–6.50% | 5.25–6.00% | 4.25–5.00% | → Stable |
| Chicago | 5.00–5.50% | 6.00–7.00% | 5.50–6.25% | 4.75–5.50% | → Stable |
| Dallas / Fort Worth | 5.25–5.75% | 6.25–7.25% | 5.75–6.50% | 5.00–5.75% | ↑ Compressing |
| Atlanta | 5.25–6.00% | 6.50–7.25% | 5.75–6.75% | 5.00–5.75% | → Stable |
| Phoenix | 5.50–6.25% | 6.50–7.50% | 6.00–7.00% | 5.25–6.00% | ↓ Widening |
| Savannah / Port Markets | 5.25–5.75% | 6.25–7.00% | 5.75–6.50% | 5.00–5.75% | ↑ Compressing |
| Secondary Markets | 6.00–7.50% | 7.00–8.50% | 6.50–8.00% | 6.00–7.00% | → Stable |
Note: Cap rates are estimated ranges based on institutional transaction activity, broker surveys, and market reports. Individual transactions may fall outside these ranges. Always perform independent due diligence. Calculate industrial returns →
| Tenant / Category | Credit Rating | Typical Lease Term | Cap Rate Range | Rent Bumps | Trend |
|---|---|---|---|---|---|
| McDonald's (Corporate) | BBB+ (S&P) | 20 yrs (ground) | 4.50–5.25% | 5% / 5-yr steps | → |
| CVS Pharmacy | BBB (S&P) | 25 yrs | 5.00–5.75% | Flat / CPI | ↓ Widening |
| Walgreens | BB+ (S&P) | 25 yrs | 6.50–7.50% | Flat / stepped | ↓ Widening |
| Dollar General | BBB (S&P) | 15 yrs | 5.50–6.25% | 10% / 5-yr steps | → |
| AutoZone | BBB (S&P) | 20 yrs | 4.75–5.50% | 5–10% / 5-yr steps | → |
| Starbucks | BBB+ (S&P) | 10 yrs | 4.75–5.50% | 10% / 5-yr or annual | ↑ Compressing |
| Chick-fil-A (Ground Lease) | Private (Strong) | 20 yrs (ground) | 3.75–4.50% | 10% / 5-yr steps | ↑ Compressing |
| Non-IG Restaurant | Non-Rated | 10–15 yrs | 6.50–8.50% | Variable | → |
| Hotel Type | Major MSAs | Secondary Markets | Tertiary Markets | Typical Price/Key |
|---|---|---|---|---|
| Limited-Service Economy | 9.00–12.00% | 10.00–14.00% | 12.00–16.00% | $40K–$70K |
| Select-Service (Flagged) | 7.00–8.50% | 8.00–10.00% | 9.00–12.00% | $90K–$150K |
| Extended-Stay | 7.50–9.50% | 8.50–11.00% | 9.50–13.00% | $70K–$110K |
| Full-Service | 6.50–8.50% | 7.50–10.00% | 8.50–12.00% | $150K–$350K |
| Luxury / Lifestyle | 6.00–8.00% | 7.00–9.50% | 8.00–11.00% | $300K–$700K+ |
| Resort | 6.00–8.50% | 7.00–10.00% | 7.50–11.00% | $200K–$500K |
| Loan Type / Asset | Typical LTV | Spread Over 10-Yr T | All-In Rate (Est.) | Amortization | Term |
|---|---|---|---|---|---|
| Life Co — NNN Industrial (IG Tenant) | 55–65% | 140–175 bps | 5.85–6.20% | 25–30 yrs | 10–25 yrs |
| Life Co — NNN Retail (IG Tenant) | 55–65% | 140–185 bps | 5.85–6.30% | 25–30 yrs | 10–25 yrs |
| CMBS Industrial | 65–70% | 160–210 bps | 6.05–6.55% | 25–30 yrs | 5–10 yrs |
| CMBS Hotel | 55–65% | 250–325 bps | 6.95–7.70% | 25 yrs | 5–7 yrs |
| CMBS Multifamily | 65–75% | 155–195 bps | 6.00–6.40% | 30 yrs | 5–10 yrs |
| Regional Bank — Industrial | 60–70% | 175–250 bps | 6.20–6.95% | 20–25 yrs | 5–7 yrs |
| Bridge — Industrial (Value-Add) | 70–80% LTC | 350–500 bps (SOFR) | 7.80–9.30% | I/O | 2–3 yrs |
| Bridge — Hotel (Value-Add) | 65–75% LTC | 400–600 bps (SOFR) | 8.30–10.30% | I/O | 2–3 yrs |
All rates are indicative estimates based on market conditions as of Q2 2026. Actual rates vary by lender, underwriting, and market conditions. Always obtain quotes from qualified lenders.
| Office Type | Cap Rate |
|---|---|
| Trophy Class A (Major CBD) | 6.00–7.50% |
| Class A Suburban | 7.50–9.50% |
| Class B (Major CBD) | 8.00–11.00% |
| Medical / MOB | 5.75–7.00% |
| Life Science (Core) | 5.50–6.75% |
| Distressed Office | 10.00%+ or value-add |
| Multifamily Type | Cap Rate |
|---|---|
| Class A Garden (Sun Belt) | 5.00–5.75% |
| Class A Urban High-Rise | 4.50–5.25% |
| Class B Value-Add | 5.75–7.00% |
| Workforce / Class C | 7.00–8.50% |
| Senior Housing / CCRC | 5.50–7.50% |
| Student Housing | 5.50–7.00% |
Market Commentary — Q2 2026
Industrial Real Estate
Industrial vacancy remains near historic lows nationally at 4.8%, though pockets of elevated vacancy have emerged in Sun Belt markets (Phoenix, Atlanta, Dallas) that saw significant new supply deliveries in 2024–2025. Core infill markets (Inland Empire, NJ, Chicago) remain supply-constrained. Rent growth has moderated from the 20%+ peaks of 2022 to a more sustainable 4–8% annually. Institutional demand remains robust, particularly for cold storage, last-mile logistics, and port-adjacent assets.
NNN Retail (Net Lease)
The NNN retail market continues to see strong demand from 1031 exchange buyers, family offices, and net lease REITs. Investment-grade tenant cap rates have remained relatively stable as buyers value credit quality and lease security. Walgreens and Rite Aid have created headwinds for pharmacy NNN values after store closure announcements. QSR (quick-service restaurant) NNN assets, particularly Chick-fil-A and Starbucks ground leases, trade at historically tight cap rates due to unit-level sales performance.
Hotel Investment
U.S. hotel performance has recovered well from pandemic-era disruptions. Select-service RevPAR is tracking at $90–$110 in most major MSAs as of Q2 2026. Transaction volume is recovering as buyers and sellers close the bid-ask gap that emerged in 2022–2023. Extended-stay assets continue to outperform the broader hotel sector due to long-stay demand from corporate relocation, construction crews, and travel nurses. Major market full-service remains attractive for institutional buyers at appropriate pricing.
Financing Conditions
Commercial real estate lending conditions have improved since the dislocations of 2022–2023. Life insurance companies remain the most aggressive lenders for high-quality NNN and industrial assets, with spreads tightening as competition increases. CMBS issuance has rebounded to $90B+ annualized pace in 2026. Regional banks remain cautious on office and hotel exposure following 2023–2024 workout activity. Bridge lending activity has recovered, particularly for industrial value-add and multifamily repositioning.