Calculate cap rates and net operating income for commercial properties in Arizona. Compare your results against Arizona's primary market benchmarks sourced from CBRE H2 2025.
Phoenix is one of the fastest-growing metros in the US, driving strong multifamily and industrial fundamentals. The Sun Belt migration trend, data center development, and semiconductor manufacturing (TSMC) have significantly boosted demand. Cap rates have compressed from 2022 peaks.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.0% | 6.5% |
| Industrial | 5.5% | 7.0% |
| Retail | 5.5% | 7.5% |
| Office | 6.5% | 8.5% |
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.
Arizona cap rates typically range from 5.0–6.5% for multifamily, 5.5–7.0% for industrial, 5.5–7.5% for retail, and 6.5–8.5% for office. Phoenix leads as the primary investment market with rates toward the lower end of these ranges.
Phoenix benefits from exceptional population growth, business-friendly taxes, semiconductor and data center investment (TSMC, Intel), and Sun Belt migration trends. Industrial demand is particularly strong from logistics and advanced manufacturing, contributing to cap rate compression in that sector.
Arizona multifamily, particularly in Phoenix and Scottsdale, attracted significant institutional capital through 2021–2023. Some supply overhang from new deliveries in 2024–2025 modestly expanded cap rates, but strong underlying demand fundamentals keep Arizona among the most active primary Sun Belt markets.
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.