Cap rates in certain areas

10 Replies

Anyone have a way to look up cap rates in a certain area? I'm trying to get an evaluation on the property I want to purchase and can't find how to look up cap rates in my local area. Thanks in advance everyone!

@Kyle Woodruff

As others have mentioned Costar and CBRE are good sources.

High level broad brush, average cap rates across the US for apartments are approximately 5%. In dynamic highly sought after top tier markets - Phoenix, Dallas Ft Worth, Austin, Atlanta, I am seeing deals trade below 4% cap rates. In small smaller “slower” lower growth towns outside metro areas, you might see 7% cap rates.

In my local market, Greenville SC which is booming but certainly a tertiary market, cap rates are in the 5% range.

@Adam Lacey

Closing one later this month and have another under contract.

So I am finding them.

They are not cheap and they aren’t “deals” per se but rather solid long term investments in a booming area.

Greenville especially of off the hook so much mew construction and investment everywhere you turn. The rest of the Upstate feeds off Greenville dynamic growth.

@Arn Cenedella - are there certain areas of the Greenville MSA that you see the most growth potential? I have a friend moving to Simpsonville and we're kicking around the idea of doing some development in the area. Would love to get your thoughts.

@Adam Lacey

I believe anywhere in Greenville or Spartanburg Counties would be good.

Values are going up everywhere since it’s the same economic engine.

Hard to pinpoint specific areas - the better areas for now are of course more expensive.

Each deal is different - it comes down to the numbers.

But if you can find developable land anywhere here, it will work well.

For my own investments, I look all over these two counties. My preference is closer to downtown Greenville the better but it is pricey.