The number the market checks every quarter.
Where California priced this quarter, set against the U.S. national average. Multifamily, office, retail, and industrial, sourced from CoStar SaleComp, published by ARCA on the 15th of the month following each quarter-end.
California — trailing six quarters
Average actual cap rate by asset class. Sourced quarterly from CoStar SaleComp closed-transaction data filtered to California.
| Asset Class | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 | 2026 Q3 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 5.50% | 5.50% | 5.70% | 5.70% | 5.70% | 5.70% |
| Office | 6.50% | 6.60% | 6.90% | 6.70% | 6.60% | 7.70% |
| Retail | 6.00% | 6.10% | 5.90% | 5.90% | 6.30% | 6.30% |
| Industrial | 6.20% | 6.00% | 5.80% | 6.10% | 6.10% | 5.60% |
United States — trailing six quarters
National average for the same period, used as the baseline for the California spread.
| Asset Class | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 | 2026 Q3 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 7.10% | 7.10% | 7.10% | 7.10% | 7.00% | 7.10% |
| Office | 7.70% | 7.80% | 7.80% | 7.60% | 7.80% | 7.60% |
| Retail | 7.10% | 7.10% | 6.90% | 7.00% | 7.00% | 6.80% |
| Industrial | 7.40% | 7.30% | 7.30% | 7.40% | 7.30% | 7.30% |
The spread — California vs. United States (bps)
Negative numbers mean California is pricing tighter than the U.S. (premium pricing). Positive means California is pricing wider (a discount). The trajectory of each row is the story.
| Asset Class | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 | 2026 Q3 QTD |
|---|---|---|---|---|---|---|
| Multifamily | -160 bps | -160 bps | -140 bps | -140 bps | -130 bps | -140 bps |
| Office | -120 bps | -120 bps | -90 bps | -90 bps | -120 bps | +10 bps |
| Retail | -110 bps | -100 bps | -100 bps | -110 bps | -70 bps | -50 bps |
| Industrial | -120 bps | -130 bps | -150 bps | -130 bps | -120 bps | -170 bps |
California — transaction volume by quarter
Sample size matters. Below is the count of closed transactions feeding each quarter’s California average.
| Asset Class | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 | 2026 Q3 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 1465 | 1425 | 1675 | 1100 | 1403 | 861 |
| Office | 750 | 765 | 895 | 742 | 768 | 480 |
| Retail | 1311 | 1397 | 1468 | 1374 | 1445 | 870 |
| Industrial | 787 | 795 | 899 | 705 | 877 | 508 |
The ARCA SoCal Cap Rate Index is published quarterly. Next release: October 15, 2026 (Q3 2026 data).
Questions on methodology? Read the full methodology or contact our research desk.
Cap rates by asset class.
Current cap rate dynamics on each of the asset classes ARCA brokers across Los Angeles.
Apartment building and multifamily sales across Los Angeles, from 5-unit value-add to institutional-scale.
Office and creative office building sales across LA submarkets.
Shopping center, single-tenant NNN, and retail property sales.
Industrial warehouses and flex space sales across Greater Los Angeles.
What we’re seeing in Q2 2026
Multifamily continues to price at a structural premium in California, 130 basis points inside the U.S. average, reinforced by persistent supply constraints and rent fundamentals. Office sits 120 bps tighter than the national set, which repriced wider on distressed product while California held its coastal bid. Retail is 70 bps tighter as California grocery-anchored and street assets held firmer than the U.S. Industrial rounds out the group at 120 bps tighter, with coastal infill scarcity keeping California pricing well inside the national average.