Calculate cap rates and net operating income for commercial properties in Massachusetts. Compare your results against Massachusetts's gateway market benchmarks sourced from CBRE H2 2025.
Boston/Cambridge is a top-tier gateway market anchored by world-class universities (Harvard, MIT), a leading life sciences and biotech cluster (Kendall Square is the world's most valuable research cluster), and financial services. Lab/life sciences properties command exceptional demand and compressed cap rates. The Seaport District has emerged as a major tech and innovation hub.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.0% | 5.5% |
| Industrial | 4.5% | 6.0% |
| Retail | 5.0% | 7.0% |
| Office | 5.5% | 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.
Massachusetts cap rates range from 4.0–5.5% for multifamily, 4.5–6.0% for industrial, 5.0–7.0% for retail, and 5.5–8.5% for office. Boston/Cambridge commands some of the tightest rates in the country, particularly for life sciences and lab space which can trade below 4.5%.
Kendall Square in Cambridge is considered the world's most valuable research cluster, home to biotech giants (Biogen, Moderna, Pfizer R&D) and hundreds of startups spinning out of Harvard and MIT. Life sciences/lab space commands exceptional pricing and compressed cap rates due to structural undersupply, long lease terms, and blue-chip tenants with strong credit.
Boston's office market is bifurcated: life sciences lab conversion and top-tier Class A Seaport/Back Bay space remains highly sought after, while older Class B/C suburban offices face vacancy challenges. The Seaport District has become one of the most active innovation markets in the country, attracting major tech tenants (Amazon, Google, PTC) and keeping core office cap rates competitive.
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.