Calculate cap rates and net operating income for commercial properties in Alabama. Compare your results against Alabama's secondary market benchmarks sourced from CBRE H2 2025.
Huntsville's aerospace and defense sector drives strong industrial and multifamily demand. Birmingham offers value-add opportunities. Cap rates are higher than national averages reflecting the secondary market premium.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 6.0% | 8.0% |
| Industrial | 6.5% | 8.5% |
| Retail | 6.5% | 8.5% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
In Alabama, cap rates typically range from 6.0–8.0% for multifamily, 6.5–8.5% for industrial and retail, and 7.0–9.5% for office properties, based on 2025–2026 market data. Huntsville's growing aerospace corridor tends toward lower rates while rural Alabama markets command higher yields.
Alabama offers attractive value-add opportunities, particularly in Huntsville (aerospace/defense driven) and Birmingham. Cap rates above the national average reflect higher potential yields, but also lower liquidity compared to primary gateway markets. Industrial properties near logistics corridors have shown strong fundamentals.
Alabama cap rates generally run 50–150 basis points above national averages for comparable property types, reflecting its secondary market status. Multifamily nationally averages ~5.6% while Alabama typically sees 6.0–8.0% depending on market and asset class.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.