NYC Commercial Real Estate Cap Rate
Calculate cap rates, property values, or required NOI for your commercial real estate investment analysis.
Annual Net Operating Income
NYC Market Cap Rates (2024-2025)
*Cap rates move with location, building quality, tenant credit, and lease terms. Contact us for a read on your specific property.
Cap Rate FAQ
What is a cap rate?
Capitalization rate (cap rate) measures the rate of return on a real estate investment property. It's calculated by dividing the Net Operating Income (NOI) by the property's current market value or purchase price. A higher cap rate typically indicates higher risk and higher potential returns.
What is a good cap rate for NYC?
In NYC, 'good' cap rates vary by asset class and location. Manhattan multifamily typically trades at 4.5-5.5%, while office buildings range from 5-7%. Lower cap rates indicate more stable, lower-risk investments. Post-2022, cap rates have expanded 100-150 basis points due to higher interest rates.
How does cap rate affect property value?
Cap rate and property value move in opposite directions. A lower cap rate means a higher value (investors pay more for stable income), and a higher cap rate means a lower value (investors want more return for the risk). A 1% change in cap rate can move value substantially.