Cap Rate Calculator: What 18 Real Estate Funds Assume by Property Type (SEC Filings, June 2026)

The formula, and what the calculator above does

Cap rate = net operating income ÷ property value (or purchase price). Rearranged, value = NOI ÷ cap rate, and NOI = value × cap rate. The calculator above has three tabs for exactly those three questions: find the cap rate, find the value, find the NOI. You can type the NOI directly, or build it from monthly rent, vacancy and annual operating expenses.

NOI is income after vacancy and operating costs (property taxes, insurance, repairs, management) and before the mortgage, depreciation and income tax. That is why the cap rate ignores how the property is financed: two buyers of the same building at the same price get the same cap rate whatever they borrow.

Two worked examples, both our arithmetic:

• A building that sells for $2,000,000 with $150,000 of NOI has a cap rate of 7.5% ($150,000 ÷ $2,000,000).
• At a 7.5% cap rate, $150,000 of NOI is worth $2,000,000; at 6.5% the same NOI is worth about $2,307,692, and at 8.5% about $1,764,706. The same income, the 6.5% value is 31% higher than the 8.5% value.

That last point is the whole reason professionals argue about cap rates: a small move in the cap rate is a large move in value. The rest of this page is about which cap rates professionals actually use.

What these numbers are, and what they are not

When a non-traded REIT strikes its net asset value, the filings describe a valuation of each property by appraisers or valuation firms, most often with a discounted cash flow. That model needs two inputs: a discount rate (the return a buyer would require) and an exit cap rate (the cap rate applied to the property's income in the last year of the model to estimate the price it sells for). The funds then disclose the weighted averages by property type. Blackstone's BREIT puts it this way in its 10-K for 2025: “We believe the discount rate and exit capitalization rate are the key assumptions utilized in discounted cash flow methodology (the Income Approach).”

Some valuations use a plain direct capitalization instead. Ares Real Estate Income Trust describes it as “applying a capitalization rate to the estimated rental income to be generated by the real estate assets of the unconsolidated joint venture partnerships”.

So the table below is a professional owner's assumption about the price it could get on a sale, not the price it paid and not a market average. Four limits to keep in mind:

1. It is an exit rate, not a going-in rate. The going-in cap rate is NOI divided by the price paid today. The exit rate is applied to a future NOI to estimate a future sale. The filings do not say how the two compare for these portfolios.
2. Each vehicle's figure is a weighted average of its own buildings. The medians on this page are medians of those vehicle figures; they are not weighted by vehicle size and they cover institutional-quality, mostly stabilized portfolios.
3. Valuations are estimates by firms paid by the funds, and the filing date is not the valuation date. Every figure here is as of June 30, 2026 or June 30, 2025.
4. Labels differ. Blue Owl ORENT, Fortress Net Lease REIT and North Haven Net REIT call their key assumption a "capitalization rate" (marked with an asterisk below); Hines Global's 10-Q row is labelled "Capitalization rate" while its 10-K says "Exit capitalization rate". We show the label each filing uses.

Exit cap rates by property type: June 30, 2026 against June 30, 2025

Every row below is from the issuer's own table. "Change" is our arithmetic in basis points (one basis point is 0.01 percentage point). An asterisk marks a row labelled "capitalization rate" rather than "exit capitalization rate" (see the limit above). "Not listed" means that filing's table did not carry that row, not that the value is zero.

Multifamily and residential

Twelve vehicles report a residential or multifamily exit cap rate. They cluster between 5.1% (Ares Real Estate Income Trust) and 5.86% (J.P. Morgan Real Estate Income Trust). One caution on Nuveen Global Cities REIT: its June 30, 2026 table adds separate rows for international assets (multifamily international 3.70%, industrial international 5.75%), so the +24 basis point change in its domestic multifamily row compares two tables built on different groupings.

Industrial

Industrial has the widest spread among the stabilized types, from 5.5% (Blackstone BREIT) to 6.7% (Cantor Fitzgerald Income Trust, which holds single-tenant industrial). Hines Global Income Trust's industrial row is among the lowest at 5.64%, while Apollo Realty Income Solutions (6.2%), Brookfield's logistics row (6.3%) and J.P. Morgan Real Estate Income Trust (6.43%) are in the upper half. Brookfield's industrial-type row is "Logistics" and Ares Industrial REIT is a single-property-type fund, so its one number is its industrial rate.

Office

Office carries the highest exit cap rate in nearly every vehicle that holds it: between 6.7% and 7.3% for six of the eight. The exceptions are Blackstone BREIT at 5.7%, whose filing does not explain the gap to peers, and Cantor Fitzgerald Income Trust at 6.0%, which holds single-tenant office. RREEF Property Trust and Brookfield REIT show no office row in their June 2026 tables.

Retail

Retail is the most dispersed type among the diversified vehicles: from 5.98% (Nuveen, grocery-anchored) to 7.3% (Invesco Real Estate Income Trust). Blackstone, JLL, Ares and RREEF sit between 6.0% and 6.42%.

Other property types

Self-storage, healthcare, student housing, manufactured housing, single-family rental, net lease and operating apartment communities sit mostly between 5.4% and 6.5%. The exceptions are Starwood's "other" row at 6.7%, Blue Owl ORENT's healthcare at 6.6% (a "capitalization rate", see below) and Cottonwood's development assets at 5.25%. Hospitality at BREIT (9.0%) is the highest exit cap rate in any June 2026 table, and Nuveen's international multifamily (3.70%) is the lowest. Only Blackstone BREIT reports a separate data center row (6.4%).

Portfolio-wide weighted averages

KREST is a registered closed-end fund, so it reports in its N-CSRS a single weighted average across its real estate equity investments, with the range across individual assets, instead of a table by property type. The filing also reports a weighted-average discount rate of 7.12% (range 4.20% to 8.50%) at June 30, 2026 against 6.91% (range 4.20% to 7.51%) a year earlier.

Net lease funds that disclose a "capitalization rate"

Blue Owl ORENT, Fortress Net Lease REIT and North Haven Net REIT disclose one capitalization rate per property type as the key valuation assumption. Fortress's industrial rate was 7.26% at June 30, 2025, 7.31% at December 31, 2025 (10-K, accession 0001193125-26-126080) and 6.93% at June 30, 2026, a 38 basis point fall in six months (our arithmetic). Blue Owl ORENT's industrial rate moved the other way over the year, 5.7% to 6.0%. The filings do not split these moves between the market and the mix of properties held. Fortress's retail rate of 8.06% is 1.76 points above Blackstone BREIT's 6.3%, which shows how much the label "retail" can cover (single-tenant net lease against diversified retail).

So what is a "good" cap rate? Read it from the table

“Good” has two meanings, and the filings help with both.

For a buyer, a higher cap rate means more income per dollar paid; for a seller, a lower one means a higher price. A cap rate is only "good" relative to the risk and to what the rest of the market is pricing. The summary below is the market's pricing as assumed by professional owners, at June 30, 2026.

How to use it, in plain terms:

• Multifamily and residential: about 5% to 6%. Every one of the twelve vehicles assumes an exit between 5.1% and 5.86%. A 5.0% cap rate on an apartment building is below every vehicle in the table; a 7% cap rate is above all of them. That does not make 7% "good" on its own: it may mean higher risk, a weaker market or a property that needs work.
• Industrial: about 5.5% to 6.7%, with institutional logistics portfolios at the low end.
• Retail: about 6% to 7.3%. Office: about 5.7% to 7.3%, median 6.94%. Both carry more income per dollar of price than apartments, because the market charges more for leasing risk.
• Single-family rental, the property a small landlord is most likely to buy: Nuveen Global Cities REIT assumes 5.50% and Brookfield REIT 5.5% (5.4% a year earlier). That is the rate they assume for selling a portfolio of rental houses, not the price any individual house trades at, so a house offered to you at a 7% cap rate is not a mispricing against these funds. It is a different asset (one house, your own management), a different measure (going-in against exit), and a different buyer.

One more use of the table: check a projection. If a syndication, DST or fund model assumes an exit cap rate below the figure in the table for that property type, its projected return depends on selling at a better price than these owners assume. We show below how much that single assumption can move an IRR.

What moves a cap rate

Interest rates, and the spread to the 10-year Treasury

Cap rates and long-term interest rates are linked because the buyer of a building is choosing between that income and a risk-free Treasury yield, and because most buyers borrow. The Federal Reserve's series of the 10-year Treasury constant maturity yield (FRED, DGS10) was 4.24% on June 30, 2025, 4.44% on June 30, 2026 and 5.31% on October 5, 2026. Here is how the median exit cap rates compare with the yield on each June 30. Medians in this table are for the vehicles that report the type in both filings, so they can differ by a few basis points from the summary above.

Two things stand out (our arithmetic). First, between June 2025 and June 2026 the 10-year yield rose 20 basis points while the median exit cap rate moved only a little (0 to +5 basis points as the median of each vehicle's change; between -10 and +10 as the change in the median level), so the spread to the yield narrowed by roughly 10 to 30 basis points, depending on property type. The valuation firms did not pass the rise in yields through to cap rates, at least not yet. Second, the last column shows what the same June cap rates would look like against today's yield: 19 basis points of spread for multifamily, 49 for industrial. That is not a forecast that cap rates will rise, and appraisers weigh rents, transactions and many other inputs, not a single yield. It is the reason the filings for the quarter ended September 30, 2026 (due in November) are worth reading.

Property type and lease length

The table shows the ranking: apartments and industrial at the bottom of the range, retail and office at the top, hospitality far above. Long-lease net lease sits near apartments (5.4% to 5.5% at BREIT and Brookfield). In general the market pays a lower cap rate for income it considers safer and growing.

Who determines the number

The cap rate in a NAV filing is an estimate, and the filings say who makes it. Some funds say the adviser (the manager the fund pays) determines the assumption and an independent valuation advisor reviews it. Others say the outside valuation firm determines it and the adviser reviews.

The wording is from each issuer's June 30, 2026 filing. We do not say either arrangement produces better numbers; the point is that the cap rate you read in a NAV filing is not an observed market price.

How much value a quarter-point is worth

Every filer in the table discloses the effect of a 0.25-point change in its exit cap rate on property value, holding everything else constant. Here is a 0.25-point rise, as filed for June 30, 2026.

The effect is smaller than a plain division suggests. Using the direct capitalization formula, a cap rate rising from 5.5% to 5.75% lowers the value of the same income by 4.35% (our arithmetic: 5.5 ÷ 5.75 - 1), because value is income divided by the rate. In the filings the discounted cash flow models report -2.1% to -3.8% on all but two lines (BREIT's hospitality at -1.4% and data centers at -0.9%), because the exit cap rate only sets the final-year sale price in a ten-year model, and the years of rent before it do not change. An asterisk marks the vehicles that disclose a "capitalization rate" rather than an "exit capitalization rate".

Cap rate vs cash-on-cash vs IRR

The three measures answer different questions, and the same property can look very different on each.

Here is one illustrative property, using the calculator's default numbers: a $400,000 purchase with $24,000 of NOI. These inputs are ours, not from any filing, and the example ignores closing costs, sale costs, taxes and reserves.

• Cap rate: $24,000 ÷ $400,000 = 6.0%.
• Cash-on-cash: borrow 70% ($280,000) on an interest-only loan at 7.0%. Interest is $19,600, cash flow is $4,400 on $120,000 of equity, so cash-on-cash is 3.67%, lower than the 6.0% cap rate. When the loan rate is higher than the cap rate, borrowing lowers the cash yield.
• IRR: hold five years with NOI growing 3% a year, then sell at a cap rate applied to the year-six NOI of $27,823. The only thing that changes below is the exit cap rate.

The cap rate at purchase (6.0%) and the cash-on-cash (3.67%) are identical in all three rows. A half-point change in the exit cap rate moves the IRR by four points. This is why the exit cap rate assumptions in the filings above matter, and why the exit cap rate in any projection you are shown is the first number to check. It is also where the page on how a rental property calculator works picks up: cash flow, financing and the sale in one model. If you are comparing loans for a rental, the DSCR loan calculator is built on the same NOI and debt service.

What a reader can do with this

1. Ask for both cap rates. For any property, DST, syndication or fund, ask for the going-in cap rate and the exit cap rate in the model. Compare the exit rate with the median for that property type in the table above.
2. Check the projection's sale assumption. If the model's exit cap rate is lower than the table's range for that type, ask what supports it. Our worked example shows a half-point can change an IRR by four points.
3. Use the calculator with a range, not a point. Run your property at the purchase cap rate, then at a rate 0.5 and 1.0 points higher, and see what it is worth.
4. If you hold a non-traded REIT, the exit cap rate is the number behind your NAV. The sensitivity table tells you roughly what a 0.25-point change does to property value (before debt). For how these funds compare, see our comparison of the big-brand NAV REITs, the best NAV REITs of 2026 and NAV REITs against interval funds. Individual fund reviews include Blackstone BREIT, Starwood SREIT, JLL Income Property Trust, Ares Real Estate Income Trust, Hines Global Income Trust and Blue Owl ORENT.
5. If you are looking at a DST or a syndication, compare the offering's going-in cap rate with the exit rates here and read our DST fee analysis from Form D.

This is analysis of public documents, not investment, legal or tax advice.

Filings used

Each vehicle's exit cap rate table is in the quarterly report named below (Form 10-Q, or Form N-CSRS for KREST). The accession number identifies the filing on SEC EDGAR.

FAQ

Sources, read on SEC EDGAR on October 7, 2026: the Form 10-Q for the quarter ended June 30, 2026 and the Form 10-Q for the quarter ended June 30, 2025 of each of Blackstone Real Estate Income Trust, Starwood Real Estate Income Trust, JLL Income Property Trust, Ares Real Estate Income Trust, Ares Industrial Real Estate Income Trust, Nuveen Global Cities REIT, RREEF Property Trust, Invesco Real Estate Income Trust, Apollo Realty Income Solutions, Hines Global Income Trust, Cantor Fitzgerald Income Trust, Brookfield REIT, Cottonwood Communities, Blue Owl Real Estate Net Lease Trust, J.P. Morgan Real Estate Income Trust, Fortress Net Lease REIT and North Haven Net REIT (accession numbers in the table above); the Form N-CSRS of KKR Real Estate Select Trust for the periods ended June 30, 2026 and June 30, 2025; Fortress Net Lease REIT's Form 10-K for 2025 (accession 0001193125-26-126080); BREIT's and Ares Real Estate Income Trust's Forms 10-K for 2025 (accessions 0001662972-26-000032 and 0001628280-26-015437) for the two quoted passages; and the Federal Reserve Board's 10-year Treasury constant maturity series (FRED, DGS10), downloaded October 7, 2026. “Our arithmetic” marks our own calculations: medians and changes across vehicles, the spread to the 10-year yield, the direct capitalization comparison and the illustrative $400,000 example, whose inputs are ours. The cap rates are the issuers' own estimates as of the dates shown and are not market averages. This is analysis of public documents, not investment, legal or tax advice.