Let’s Talk Industrial Cap Rates, Spartanburg County
The chart in the video shows the average cap rate trends in Spartanburg County from 2015-currently in 2025.
The lowest cap rate during this time period was 7.4% in 2022 and the highest was 8.7% in 2024.
How much does a 1.3% difference in cap rates make in purchase price?
Here’s an example:
You purchase Property A. The NOI is $100,000 with a cap rate of 7.4%. The purchase price would be $1,351,351
You purchase Property A. The NOI is $100,000 with a cap rate of 8.7%. The purchase price would be $1,149,425
The difference in purchase price is approximately $200,000. Even small changes in cap rates will impact the purchase price!
Over a 10 year period, why have cap rates not changed dramatically as the market has shifted?
A cap rate is a function of both the net operating income and the purchase price. As rents increase, the purchase price will increase. Therefore, it makes sense why cap rates haven’t changed dramatically over time.
If you have any commercial real estate needs, let’s connect!
Emma McDaniel
864-576-4660
emma@mcdanielandco.com
