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what is a good cap rate for a commercial property

1Answers
Jesse
11/28/2025, 06:02:25 AM

A “good” cap rate for commercial property in the U.S. typically ranges from 5% to 10%, though it varies with property type, location, risk, and market conditions. Lower cap rates, around 4–6%, are linked to lower-risk, stable investments in prime areas, while higher cap rates above 8% reflect higher-risk opportunities.

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