The number the market checks every quarter.
Where California priced this quarter, set against the U.S. national average. Multifamily, Office, Retail, 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 Q1 | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 5.40% | 5.50% | 5.50% | 5.70% | 5.60% | 5.40% |
| Office | 7.00% | 7.20% | 7.10% | 7.00% | 7.10% | 6.50% |
| Retail | 6.60% | 6.50% | 6.70% | 6.80% | 6.70% | 5.00% |
| Industrial | 5.80% | 6.20% | 5.90% | 5.70% | 6.20% | 5.70% |
United States — trailing six quarters
National average for the same period, used as the baseline for the California spread.
| Asset Class | 2025 Q1 | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 6.40% | 6.30% | 6.40% | 6.40% | 6.50% | 6.40% |
| Office | 7.70% | 7.60% | 7.80% | 7.60% | 7.50% | 7.10% |
| Retail | 7.00% | 6.90% | 6.90% | 6.80% | 6.80% | 6.90% |
| Industrial | 6.20% | 6.00% | 6.10% | 5.90% | 5.90% | 6.00% |
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 Q1 | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 QTD |
|---|---|---|---|---|---|---|
| Multifamily | -100 bps | -80 bps | -90 bps | -70 bps | -90 bps | -100 bps |
| Office | -70 bps | -40 bps | -70 bps | -60 bps | -40 bps | -60 bps |
| Retail | -40 bps | -40 bps | -20 bps | 0 bps | -10 bps | -190 bps |
| Industrial | -40 bps | +20 bps | -20 bps | -20 bps | +30 bps | -30 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 Q1 | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2026 Q1 | 2026 Q2 QTD |
|---|---|---|---|---|---|---|
| Multifamily | 612 | 846 | 839 | 973 | 625 | 55 |
| Office | 313 | 455 | 439 | 520 | 331 | 11 |
| Retail | 54 | 67 | 61 | 83 | 54 | 2 |
| Industrial | 50 | 59 | 52 | 91 | 54 | 1 |
The ARCA SoCal Cap Rate Index is published quarterly. Next release: July 15, 2026 (Q2 2026 data).
Questions on methodology? Read the full methodology or contact our research desk.
What we’re seeing in Q1 2026
Multifamily continues to price at a structural premium in California (90 bps tighter), reinforced by persistent supply constraints and rent fundamentals. Office tightened a notch as buyers re-engaged on well-leased assets in coastal submarkets. Retail closed the gap to the U.S. as national grocery-anchored cap rates compressed. Industrial is the outlier — California priced 30 bps wider than the U.S. as inland-empire concessions worked through the comps.