National Industrial Cap Rate Report
The U.S. industrial average capitalization rate compressed further in Q3 2021 to a historical low of 5.98%—a 32 basis points (bps) decline compared to the previous quarter and 69 bps decline compared to the year earlier Q3.
Among the six U.S. regions tracked by CBRE, the average industrial cap rate remained relatively steady in the Northeast (5.75%), while the Midwest (6.43%), Mountain (5.49%), Pacific West (4.47%), South Central (6.64%), and Southeast (5.97%) recorded decreases from 7 to 122 bps. The significant decrease in the Midwest should be tempered and likely reflects the increased number of high-quality transactions reported this quarter. Industrial prices continue to increase across all regions with rent growth being the primary driver.
The U.S. industrial market shows no signs of slowing down with record-high asking rents and in-process development activity, low vacancy levels and 46 consecutive quarters of positive net absorption.
Source: Valuation VIEW
Data points are confirmed closed transactions adjusted for assumed financing and reflect overall market trends.
U.S. Industrial Cap Rate Trends
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Industrial Valuation Practice
CBRE is the largest national provider of real estate appraisal services in the country with more than 800 licensed appraisers in the United States. CBRE's industrial valuation practice has drawn from this large talent pool with more than 70 licensed appraisers who specialize in industrial valuation. These appraisers form the core of our industrial valuation team and ensure an experienced professional is responsible for each assignment.
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