Calculate cap rates and net operating income for commercial properties in Virginia. Compare your results against Virginia's primary market benchmarks sourced from CBRE H2 2025.
Northern Virginia (Arlington, Tysons Corner, Reston) is the data center capital of the world, with more data center capacity than any other global market. This drives exceptional industrial-adjacent investment and infrastructure demand. The DC metro influence compresses cap rates across NoVa. Amazon HQ2 in Arlington (Crystal City/National Landing) has created significant office and multifamily demand. Defense contractor concentration (Booz Allen Hamilton, SAIC, Leidos) provides stable, high-credit office tenancy.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.5% | 6.0% |
| Industrial | 5.0% | 6.5% |
| Retail | 5.0% | 7.0% |
| Office | 6.0% | 9.0% |
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.
Virginia cap rates range from 4.5–6.0% for multifamily, 5.0–6.5% for industrial (data center-adjacent), 5.0–7.0% for retail, and 6.0–9.0% for office. Northern Virginia has rates approaching DC gateway levels, while Richmond, Hampton Roads, and southwestern Virginia trade at more moderate secondary-market yields.
Northern Virginia, particularly Loudoun County's 'Data Center Alley,' hosts over 35% of the world's internet traffic infrastructure. Factors include reliable power from Dominion Energy's transmission infrastructure, proximity to federal government clients (DoD, intelligence agencies), fiber connectivity, and tax incentives. Major operators include Amazon Web Services, Microsoft Azure, Google, Meta, and countless colocation providers. Data center cap rates in NoVa can trade at 4–6% for stabilized assets.
Amazon's selection of Arlington's National Landing as HQ2 (announced 2018, phases opening 2023–2025) has significantly boosted multifamily, office, and retail demand in Crystal City, Pentagon City, and surrounding submarkets. The expected 25,000 jobs over the development timeline, combined with the spillover effect on the tech ecosystem, has compressed cap rates and elevated land values in the immediate vicinity.
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.