No announcement yet.

Cap Rates

  • Filter
  • Time
  • Show
Clear All
new posts

  • Cap Rates

    We have a refinancing coming up and I am checking on cap rates being used by appraisers. Mortgage Bankers are telling me they are about 6.5% to 7.0%. Anybody hear anything different? Thanks.

  • #2
    Cap rates will vary depending on how attractive your property is to large buyers. If you have a large class A property in a major market, the cap rate would be lower than a basic site in a small market.

    So without knowing more about the property it would be hard to say if it's good or bad. About a year ago mine (small market site, new construction) was appraised with an 8% cap rate. So to me your rate sounds good. But I have no idea if its an apples to apples comparison, and rates have been low lately due to the amount of money chasing these properties.

    A have seen two different appraisers more than $50k apart on a property. Numbers can vary very widely from one to another, especially if one of them does not have experience in the industry.



    • #3
      Steve is right. They can be anywhere from 5% to 8%. We had a rough warehouse in Toronto at a 5.5% cap. I think 6%-6.5% is decent.


      • #4
        Echo the above 2. We have seen everything from a 5.25 to 10+ depending on market, physical quality and how well the facility is run.
        Chasing Perfection to catch Excellence


        • #5
          Appraiser's accuracy makes Weathermen look perfect. It's a guess and there is no accountability in the system. But it's required so everyone uses them. Unfortunately, your livelihood and financial future can depend on their guessing. Good luck.

          I am seeing 8-9% in actual purchases in upper Midwest.


          • #6
            If interest stays low 4.5% to 5.0% a lower cap rate ( 7%) might work, but if they go up to 6% or 7% go with (9% or 10%)


            Latest Topics


            • pacnwstorage
              Reply to Boat/Trailer Lien
              Why not just have it towed off and let a towing company handle it from here. If you are unsure of what to do and all info points to Ca. and you are even more unsure then get it gone and rent the unit to a paying tenant. The time you take to figure this out is costing money unless the boat and trailer...
              Today, 08:08 PM
            • markus
              Reply to Cloud-based self storage software storing & emailing passwords in plaintext form
              MH: I can tell you our developers are not reading your false, misleading statements. There is nothing for them to glean here. Based on your lack of understanding the quotes (or URLs) you are misusing, not once but twice, what would our developers say to you?

              Please see above, in red, next...
              Today, 07:53 PM
            • Manager_1986
              Boat/Trailer Lien
              Hi everyone.

              OK, so we did cut locks not long ago, and found a boat and trailer in the unit. Didn't want to deal with it (lol) so we cut the occupant a killer deal to settle and come get it. Apparently he isn't interested. So we are "planning" to lien sale it.

              Today, 06:29 PM