{"success":true,"page":{"id":354,"slug":"average-cap-rates-commercial-real-estate-los-angeles-2026","title":"Average Cap Rates for Commercial Real Estate in Los Angeles — 2025/2026 Data","meta_description":"Average cap rates for commercial real estate in Los Angeles in 2026: office 4.0–9.0%, industrial 5.8–6.5%, multifamily 5.5–6.5%, retail 6.5–8.5%. Submarket breakdowns, property type data, Q1 2026 market analysis.","vertical_tags":["real-estate","cre","cap-rates","los-angeles","investment","finance"],"template_type":"comparison","status":"published","published_at":"2026-05-11T16:57:05.910Z","created_at":"2026-05-11T16:57:05.910Z","updated_at":"2026-07-09T08:30:28.234Z","content_data":{"faq":[{"answer":"In Q1 2026, average cap rates in Los Angeles range by asset class: industrial 5.8–6.5% (Class A), multifamily 5.0–6.5% depending on rent control exposure and vintage, office Class A Westside 4.0–5.5%, office Class B/C/CBD 8.0–10%+, grocery-anchored retail 5.8–6.5%, and unanchored strip retail 7.0–8.5%+. Sources: CBRE 2026 US Real Estate Outlook, Cushman & Wakefield Q1 2026, Colliers Q1 2026.","question":"What is the average cap rate for commercial real estate in Los Angeles in 2026?"},{"answer":"LA cap rates are generally lower than national averages for industrial and multifamily (reflecting strong demand and constrained supply) but higher than many coastal gateway markets for distressed office. National industrial average is approximately 5.9% (CBRE Q4 2025); LA infill industrial trades at 5.8–6.3%. LA Class A Westside office (4.0–5.5%) is tighter than national office averages (7.5–9.5%).","question":"Are Los Angeles cap rates higher or lower than the national average in 2026?"},{"answer":"Rent control materially affects multifamily cap rates in Los Angeles. Pre-1978 LA RSO properties (subject to 3–8% annual rent increase caps) trade at 6.0–7.5% cap rates vs. 4.8–5.5% for post-2020 uncontrolled product — a 100–250 bps spread for similar locations. AB 1482 (statewide, buildings 15+ years old) caps rent growth at 5%+CPI, compressing buyer expectations on income growth.","question":"How does rent control affect cap rates in Los Angeles multifamily?"},{"answer":"The lowest cap rates are in: (1) Westside office — Century City, Santa Monica, Culver City Class A at 4.0–5.5%; (2) LA County infill last-mile industrial in Vernon, City of Commerce, Carson at 5.8–6.3%; (3) Post-2020 Westside multifamily at 4.8–5.5%. According to RealEstateStack's 2026 CRE benchmarks, premium coastal submarkets command a 75–150 bps premium over comparable inland product.","question":"Which Los Angeles submarkets have the lowest cap rates for commercial real estate?"},{"answer":"A \"good\" cap rate depends on your investment thesis. Stabilized value strategies in LA typically target 5.5–6.5% going-in cap rate for industrial and 5.0–6.0% for multifamily. Value-add investors in secondary LA submarkets target 7.0–9.0% to compensate for execution risk. Given the 10-year Treasury at ~4.6% in Q1 2026, a minimum 100–150 bps spread above the risk-free rate is the conventional underwriting floor for stabilized acquisitions.","question":"What is a good cap rate to target when buying commercial real estate in Los Angeles?"}],"intro":"Los Angeles commercial real estate cap rates in 2026 range from under 4.5% for trophy Class A office in Westside submarkets to 9%+ for distressed Class B/C office in secondary corridors. The market is repricing around higher cost of capital — not collapsing — with industrial, grocery-anchored retail, and constrained multifamily maintaining investor demand while legacy office faces structural headwinds. Here are the current cap rates across property types and submarkets, sourced from CBRE, Cushman & Wakefield, and Colliers Q1 2026 data.","sections":[{"body":"The following cap rate ranges reflect stabilized, income-producing assets transacting in the Los Angeles metro in Q1 2026. Distressed or value-add transactions are excluded — those trade at implied yields materially above these ranges.\n\n| Property Type | Class A Cap Rate | Class B/C Cap Rate | Key Driver |\n|---|---|---|---|\n| **Office** | 4.0–5.5% | 8.0–10%+ | Westside trophy vs. CBD commodity |\n| **Industrial** | 5.8–6.5% | 6.5–7.5% | Last-mile demand, Inland Empire spillover |\n| **Multifamily** | 5.0–6.0% | 6.0–7.5% | Rent control exposure, vintage, location |\n| **Retail (grocery-anchored)** | 5.8–6.5% | — | Anchored by Ralphs, Whole Foods, Trader Joe's |\n| **Retail (strip/unanchored)** | 7.0–8.5% | 8.5–10%+ | Bifurcated by corridor and anchor quality |\n| **Self-Storage** | 5.5–6.5% | 6.5–7.5% | Constrained supply in infill LA markets |\n| **Net Lease (NNN)** | 5.0–6.5% | 6.5–8.0% | Credit quality of tenant drives pricing |\n\nSources: CBRE 2026 US Real Estate Outlook (LA section); Cushman & Wakefield Greater LA MarketBeat Q1 2026; Colliers LA Industrial Market Report Q1 2026.","level":2,"heading":"Los Angeles Cap Rates by Property Type — Q1 2026"}],"dataset_meta":{"spatialCoverage":"Los Angeles, California, United States","temporalCoverage":"2026/2026","measurementTechnique":"Cap rate ranges compiled from CBRE 2026 US Real Estate Outlook, Cushman & Wakefield Q1 2026 MarketBeat, and Colliers Q1 2026 regional reports"},"canonical_path":"/average-cap-rates-commercial-real-estate-los-angeles-2026","internal_links":{"tool_cta":{"desc":"Get market-specific cap rate context and investment analysis for commercial real estate decisions.","path":"/advisor","label":"Analyze Your CRE Investment →"},"network_sites":[{"name":"Stack CRE","label":"Commercial Real Estate Intelligence","domain":"stackcre.ai"},{"name":"Stack Finance","label":"Business Financial Benchmarks","domain":"stackfinance.ai"}],"related_pages":[{"slug":"commercial-real-estate-cap-rates-by-property-type-los-angeles-2026","title":"LA Cap Rates by Property Type — Detailed Breakdown (2026)"},{"slug":"current-average-cap-rates-commercial-real-estate-2026","title":"Current Average Cap Rates for Commercial Real Estate (2026)"},{"slug":"commercial-real-estate-build-out-costs-by-industry-2026","title":"Commercial Build-Out Costs by Industry in 2026"}]}},"is_preview":true},"gated":true,"upgradeUrl":"/auth/signup.html","previewSections":1}