Calculate cap rates and net operating income for commercial properties in Washington, D.C.. Compare your results against Washington, D.C.'s gateway market benchmarks sourced from CBRE H2 2025.
Washington DC is a top-tier gateway market anchored by the federal government, providing unmatched employment stability. The GSA (federal tenant) commands significant office space with AA+ credit. The DC multifamily market is exceptionally liquid with persistent demand from government employees, federal contractors, and international/diplomatic community. Office faces challenges from federal workforce reductions in 2025–2026 under DOGE cost-cutting, widening cap rates for non-federal office tenancy.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.0% | 5.5% |
| Industrial | 5.0% | 6.5% |
| Retail | 5.0% | 7.0% |
| Office | 6.0% | 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.
Washington DC cap rates range from 4.0–5.5% for multifamily, 5.0–6.5% for industrial, 5.0–7.0% for retail, and 6.0–9.5% for office. Multifamily compresses toward the lower end due to persistent federal employee demand. Office rates have widened due to federal workforce and footprint reductions.
Federal workforce and real estate footprint reductions (DOGE cost-cutting, remote work policies for federal employees) in 2025–2026 have created significant office vacancy pressure in the DC metro, widening cap rates for federal and non-federal office tenants. Multifamily has been more resilient as workforce reductions have been gradual and demand from private sector federal contractors remains. Investors are closely monitoring GSA lease renewals and federal occupancy trends.
DC multifamily benefits from exceptional demand stability: federal employees have job security across administrations, the diplomatic and international community creates persistent high-quality demand, and restricted new supply (building height limits and regulatory environment) constrains supply additions. This combination has kept DC multifamily cap rates compressed even during national downturns.
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.