Louisiana Cap Rates by Property Type: 2025 to 2026 Ranges
Louisiana commercial investment properties sold at a median cap rate of 8.8% between January 2025 and September 2026, with the middle half of closed sales between 7.8% and 10.1%. Multifamily posted the lowest median (8.0%), industrial the highest (9.0%), and deals under $1 million priced about 80 basis points above larger deals.
ELIFIN is Louisiana’s #1 commercial real estate brokerage by number of sales, with agents in Baton Rouge, New Orleans, and Lafayette. The figures below come from closed income-producing sales in ELIFIN’s database of 59,000+ commercial properties, each with NOI at sale reviewed by an ELIFIN agent.
National cap rate surveys lean on institutional trades in large metros. Most Louisiana investment sales look nothing like that: a $600,000 flex building in Ascension Parish, a $1.5 million strip center in Metairie, a 12-unit apartment building in Mid-City. Each cap rate here is the property’s net operating income at the time of sale divided by the closed sale price.
Cap rate ranges by property type
The typical range is the middle 50% of closed sales (25th to 75th percentile). It is a better pricing guide than the full low-to-high spread, which gets stretched by one-off deals like a below-market lease or heavy deferred maintenance.
| Property type | Typical range | Median | Full observed range |
|---|---|---|---|
| Industrial / flex | 7.9% to 9.8% | 9.0% | 6.1% to 13.4% |
| Office | 8.4% to 11.5% | 8.9% | 6.9% to 14.3% |
| Retail | 7.6% to 8.6% | 8.5% | 5.7% to 11.1% |
| Multifamily | 6.9% to 9.0% | 8.0% | 5.4% to 13.7% |
| All property types | 7.8% to 10.1% | 8.8% | 5.4% to 14.3% |
Closed Louisiana investment sales with NOI at sale, January 2025 through September 2026. Owner-user and vacant-building sales excluded.
Industrial and flex cap rates
Most closed industrial sales landed between 7.9% and 9.8%, with the median at 9.0%. Size moved the number: industrial sales of $1 million and up had a median of 8.3%, versus 9.2% for sales under $1 million.
Office cap rates
Office had the widest spread of any property type, with a typical range of 8.4% to 11.5%. Office buyers price lease rollover and re-tenanting costs into their offers, so remaining lease term moves office pricing more than any other type.
Retail cap rates
Retail traded in the tightest band, 7.6% to 8.6%, with a median of 8.5%. Larger, stabilized retail draws a deeper buyer pool, which keeps pricing narrow.
Multifamily cap rates
Multifamily posted the lowest median of the four types at 8.0%, and its low end (6.9%) was the lowest of any group.
How deal size moves the cap rate
Buyers ask for more yield on a sub-$1 million property: the tenant base is usually local, management falls on the owner, and financing terms are less favorable.
| Sale price | Typical range | Median |
|---|---|---|
| Under $1 million | 8.8% to 10.4% | 9.3% |
| $1 million to $3 million | 7.2% to 9.4% | 8.3% |
| $3 million and up | 7.7% to 8.9% | 8.7% |
Above $1 million, the median held near 8.5% regardless of deal size. The real break is between sub-$1 million deals and everything above.
How to estimate your property’s value from a cap rate
Divide your property’s annual net operating income by a cap rate that fits its type, size, and tenant profile. A retail center with $170,000 of NOI at 8.5% points to about $2.0 million. The same NOI on a small office building at 10% points to $1.7 million.
Where a specific property lands inside the range depends on remaining lease term, tenant credit, building age and condition, location within the parish, and how cleanly the NOI is documented. Two buildings with the same NOI can sell 150 basis points apart on those factors alone.
Methodology
Cap rates are NOI at the time of sale divided by closed sale price. The data set covers investment and income-producing sales in Louisiana that closed between January 2025 and September 2026, drawn from ELIFIN’s transaction database, which tracks ELIFIN-brokered deals and market sales verified by ELIFIN agents. Owner-user purchases and vacant-building sales are excluded because they carry no in-place NOI. Markets represented include the Baton Rouge region, the New Orleans metro, Acadiana, and the Houma-Thibodaux area. Figures are rounded to one decimal. More market reports live on ELIFIN’s Data & Insights page.
Frequently Asked Questions
What is the average cap rate for commercial real estate in Louisiana?
The median cap rate on closed Louisiana commercial investment sales was 8.8% from January 2025 to September 2026, based on ELIFIN transaction data. The middle half of sales closed between 7.8% and 10.1%. Sales under $1 million had a higher median of 9.3%.
What cap rate do Louisiana industrial buildings sell at?
Louisiana industrial and flex buildings sold at a median cap rate of 9.0% from January 2025 to September 2026, with a typical range of 7.9% to 9.8%. Industrial sales of $1 million and up had a lower median of 8.3%, versus 9.2% for sales under $1 million.
What are office and retail cap rates in Louisiana?
Louisiana office sales had a median cap rate of 8.9% with a typical range of 8.4% to 11.5%, the widest of any property type. Retail had a median of 8.5% and the tightest typical range, 7.6% to 8.6%. Figures cover closed investment sales from January 2025 to September 2026.
What are multifamily cap rates in Louisiana?
Louisiana multifamily sales had a median cap rate of 8.0% from January 2025 to September 2026, the lowest of the four major property types, with a typical range of 6.9% to 9.0%.
How do I use a cap rate to estimate what my commercial building is worth?
Divide annual net operating income by a cap rate that fits the property’s type, size, and tenants. At Louisiana’s 8.8% median, $170,000 of NOI points to about $1.9 million. Lease term, tenant credit, condition, and how well the NOI is documented can move the right cap rate by 150 basis points or more on the same income.
Selling a Louisiana investment property?
The middle half of Louisiana investment sales closed between 7.8% and 10.1% since January 2025. Your ELIFIN Block agent knows the buyers active on your corridor and runs the sale from pricing through closing.
Source: ELIFIN proprietary transaction database. Cap rates calculated as NOI at sale divided by closed sale price on Louisiana investment and income-producing sales with agent-reviewed NOI. Owner-user and vacant-building sales excluded. Figures cover January 1, 2025 through mid-September 2026. Data current as of September 26, 2026.
Disclaimer: This content is derived from ELIFIN’s proprietary database and public records and is believed accurate but not guaranteed. Market conditions change. This is for informational purposes only and does not constitute an appraisal, valuation, tax, legal, or investment advice. Consult appropriate professionals before making real estate decisions.