Cap Rates in Wilmington, Delaware

1 Reply

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

@Scott Lewis, the best way to see where cap rates are sitting is to talk with broker and commercial bankers in the area. It's also worth looking through the local Wilmington forum.

To be clear, investors don't determine the cap rate, the market does. Yes, investors are making the individual decisions of what to pay for a property, but it's an important distinction.

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