what is a good cap rate for commercial property

[EvanLee]

A "good" cap rate for U.S. commercial real estate usually ranges from 4% to 10%, though the optimal rate depends on factors like property type, location, and investor risk tolerance. Lower cap rates, around 4%-6%, typically reflect lower risk and higher property values in prime areas, while higher cap rates, 8%-10% or more, indicate greater risk but potentially higher returns.