Anybody know what the multi-family cap rate is in Philly, PA?

7 Replies

Anybody know what the multi-family cap rate is in Philadelphia, PA?

Thanks for the link.  But I don't have much faith in those numbers.  For example, I'm in the Detroit area and know from speaking to local brokers/appraisers that the cap rates here are in the low 8s.  Depending on the area.

That site says Detroit area is in the 6 range.  And San Francisco in the 5 range.

That's just not true.  These markets aren't 1 point apart.  I realize it depends on many things such as neighborhood, building size, class, age...etc.

@Todd Moriarty it varies So much by size, quality of asset location, nobody can give you a general cap rate for an entire market. A 10 unit will trade much differently than a 100 unit.

Do get real data that professionals use check out any of the following. Most are paid but some may have some free reports, reis, axiometrics, costar, real capital analytics. Also look at the local websites of the large appraisers, brokers and property management firms. Cushman and Wakefield and CBRE, NAI and others will have market reports for Philly that can answer your questions.

Thanks Derek.  I have been to those sites recently and it's hard to find specific, updated info.

@Todd Moriarty

Try this:

Reports get updated quarterly.

Google something like "cbre philly apartment market report" and replace with the different firms names.

Depends on exactly what or where you are looking...which parts of Philly, residential or commercial MFRs, foreclosures vs. rent-ready, etc. 

I can't speak to all of them, but I know that turnkey MFRs on the west and north sides average about 10-11% cap rates.

Nice, That site is good in that you can input a specific property address, and then it returns a cap rate for the particular property. I know that an average cap rate for a whole city cannot be that useful anyway.

@Jim Sakalis

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.