Calculate cap rates and net operating income for commercial properties in Rhode Island. Compare your results against Rhode Island's secondary market benchmarks sourced from CBRE H2 2025.
Rhode Island is effectively part of the Greater Boston CRE influence zone, though Providence operates as an independent secondary market. Brown University and RISD anchor an education and arts economy. Proximity to Boston and New York gives RI a catchment advantage for residents and businesses seeking lower costs. The small geographic size limits market liquidity.
| 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.
Rhode Island cap rates 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. Providence's proximity to Boston and New York keeps rates in the lower range for a secondary market, though the small size limits transaction volume and liquidity.
Providence is anchored by Brown University, RISD (Rhode Island School of Design), and a growing creative economy. Healthcare systems (Lifespan/Rhode Island Hospital) are major employers. The city's location between Boston and New York (2 hours from each) makes it attractive for cost-conscious residents and businesses. Waterfront development along the Providence River has driven hospitality and residential investment.
Rhode Island's small size means limited transaction volume compared to larger markets — typically only a handful of significant commercial transactions per quarter. This illiquidity premium is reflected in cap rates trading slightly wider than pure Boston market comparables, as investors require higher yields to compensate for less certainty on exit timing and buyer pool depth.
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.