what is good cap rate for commercial property

[LeLeilani]

In the U.S., a desirable cap rate for commercial property generally falls between 4% and 10%, depending on the investor’s risk tolerance, property type, and location. Properties in prime areas often have lower cap rates (4%-6%) due to lower risk and higher value, while properties in riskier markets may offer higher cap rates (8%-10%+), reflecting greater potential returns but increased risk.