Calculate cap rates and net operating income for commercial properties in Pennsylvania. Compare your results against Pennsylvania's primary market benchmarks sourced from CBRE H2 2025.
Pennsylvania has two distinct primary markets. Philadelphia is the 5th largest US metro, anchored by healthcare/life sciences (Jefferson Health, Penn Medicine, Children's Hospital), education (Penn, Drexel, Temple), and a strong industrial market in the I-95 Corridor. Pittsburgh has successfully transitioned from steel to tech and healthcare (UPMC, Carnegie Mellon/Pitt AI research hub, Amazon robotics). The Lehigh Valley (Allentown) is a major logistics hub.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.5% | 6.0% |
| Industrial | 4.5% | 6.5% |
| Retail | 5.0% | 7.5% |
| Office | 6.5% | 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.
Pennsylvania cap rates range from 4.5–6.0% for multifamily, 4.5–6.5% for industrial (Lehigh Valley logistics can be tighter), 5.0–7.5% for retail, and 6.5–9.5% for office. Philadelphia and Pittsburgh both have competitive primary market rates, while Central PA and smaller markets have higher yields.
The Lehigh Valley (Allentown-Bethlehem-Easton) has become one of the top US logistics markets due to its position at the intersection of I-78 and I-476, providing overnight truck access to 40% of the US population. Amazon, FedEx, UPS, and major retailers have built massive fulfillment centers here, driving exceptional industrial demand and compressed cap rates.
Pittsburgh has undergone a remarkable economic transition from steel manufacturing to a tech and healthcare hub. CMU and Pitt's AI research programs (Autonomous Vehicles, robotics, machine learning) have attracted Amazon, Google, Apple, Meta, and Microsoft research centers. UPMC is one of the nation's largest health systems and the city's largest employer, providing exceptional healthcare real estate demand.
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.