SHARE:  

August Newsletter

Historical Cap Rate Trends: Commercial Real Estate Analysis

Spartanburg County


Historical Cap Rate Trends

Data and Trends in Spartanburg County

Cap Rate Trends for Each Asset Class

Office

For the time period analyzed, the current cap rate for office is at an all time high. The cap rate has been 10.8% since 2023. The second highest cap rate year was 2009 at 10.7%. Since 2006, office cap rates have never dipped below 8.5%.


Retail

Retail cap rates have remained relatively stable. The current retail cap rate is 8.3%. The highest cap rate during the time period analyzed was 9.9% in 2009. Retail cap rates have averaged at 8.3% since 2021, which is the lowest cap rate for the time period analyzed.


Multi Family

Multi family cap rates reached its lowest point in 2021 at 4.8% and highest point in 2009 at 8.2%. The current average cap rate is 5.9% which is the highest multifamily cap rates have been since 2019.


Data: Costar

Data: 2006- 20224 YTD

Industrial

Historical Cap Rate Trends


Historical Cap Rates



The current industrial cap rate is 8.6%. The lowest cap rate during this time period was 7.5% in 2021 and the highest was 9.8% in 2009. The annual cap rate averaged from 2006-2024 is 8.6% which is exactly the current cap rate.


Projected Cap Rates


The industrial cap rate is projected to rise to 8.8% by the end of 2024 and remain at 8.8% throughout 2025. By 2029, the cap rate is projected to be 8.2% which would be the lowest industrial cap rates have been since 2022.



How do Spartanburg Cap Rates Compare to Historical US Cap Rates?

Spartanburg's industrial cap rates have trended higher than US averages. The US average cap rate is currently 7.5% which is 1.1% lower than Spartanburg's current cap rate.


In 2009, the average US industrial cap rate was 8.6%, and the average annual cap rate over the time period analyzed is 7.4%.


Although a higher cap rate typically indicates higher risk, the data also shows that industrial assets in Spartanburg can provide a higher return than many alternative markets.



Projected Cap Rates


Industrial cap rates are projected to rise to 8.8% by the end of 2024 and remain at 8.8% throughout 2025. By 2029, the cap rate is projected to be 8.2% which would be the lowest industrial cap rates have been since 2022.



Data: Costar

Let's Take A Poll!


Which Asset Class Is Projected to Have the Highest Cap Rate by 2026?

Check September's Newsletter for the Answer!
Industrial
Office
Retail
Multifamily

Answer to July's Poll: Which is the largest category of industrial buyers in Spartanburg County?


Reit/Public, User, Private, Private Equity, Institutional


Answer: Private at 35%


Data Source: Costar

Check Out Our Videos!

Let's Talk Commercial Real Estate Trends, Which Asset Class Is in the Lead?


Featured


SOLD 4012 N. Blackstock Road

Represented Buyer


Office/Training Facility

4 Offices, Full Kitchen, 2.5 Baths, Conference Room, Class room, Patio

4 Specialty Outdoor Buildings

Water and Sewer Access

.73 +/- Acres and 3263+/- Square Feet


View Listing


Retail/Service Building

Visibility from Interstate 85

 Retail/customer area

10 offices, breakroom, storage room

Warehouse/workshop area with paint booth (10,430+/- sq ft) and 2 Wash Pits

2x 14 ft drive-in doors, 1x 10 ft drive in door

View Listing
See All Listings 

About McDaniel and Company

Our Mission


To conduct real estate transactions using excellent service, professional knowledge, and sound ethics to enrich the lives of our clients and to contribute to the economic growth and development of the Carolinas. 


Our Vision


To be the best commercial real estate brokerage in our market area.


Our Core Values


  • Serving Clients’ Best Interest
  • Integrity
  • Professionalism
  • Respecting Public’s Best Interest
  • Commitment to Economic Growth
Review us on Google

Want to discuss? Connect with us!


446 Oak Grove Road, Spartanburg, SC

Call (864) 576-4660
emma@mcdanielandco.com
billmcrltr@aol.com

McDaniel and Company is one of the Upstate region’s leading commercial, industrial, multi-family, and investment property firms. We deliver on all levels. Our reputation and years of experience are factors you can count on.

Facebook  YouTube  LinkedIn
Visit our Website