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
|