Warehouse and Industrial Cap Rates 2026: Yield Benchmarks by Market
Key findings
Industrial cap rates expanded across all 15 tracked markets in Q1 2026, reflecting higher interest rates and increased investor caution. The average prime yield rose 25bps YoY to 5.2% (US), 4.8% (AU), and 5.0% (NZ).
Sydney maintains the tightest prime yield at 4.25%, reflecting institutional demand for port-proximate logistics assets with long WALE leases. Los Angeles follows at 4.50%.
Dallas-Fort Worth saw the widest cap rate expansion (+40bps YoY) as elevated vacancy reduced investor confidence in near-term rental growth, widening the spread between prime and secondary assets to 100bps.
The prime-to-secondary spread has widened across all markets, averaging 150bps. This signals growing risk discrimination: investors remain willing to pay premiums for covenant strength and location, but are repricing secondary assets more aggressively.
Prime cap rates ranked (tightest yield first)
| Market | Prime | Secondary | Spread | YoY |
|---|---|---|---|---|
| SydneyAU | 4.25% | 5.75% | 150bps | +25bps |
| Los AngelesUS | 4.50% | 5.50% | 100bps | +25bps |
| AucklandNZ | 4.75% | 6.00% | 125bps | +15bps |
| MelbourneAU | 4.75% | 6.25% | 150bps | +30bps |
| BrisbaneAU | 5.00% | 6.50% | 150bps | +25bps |
| WellingtonNZ | 5.25% | 6.50% | 125bps | +20bps |
| ChicagoUS | 5.25% | 6.25% | 100bps | +35bps |
| Dallas-Fort WorthUS | 5.50% | 6.50% | 100bps | +40bps |
| AtlantaUS | 5.50% | 6.75% | 125bps | +35bps |
| PerthAU | 5.50% | 7.00% | 150bps | +20bps |
| HamiltonNZ | 5.50% | 7.00% | 150bps | +15bps |
| TaurangaNZ | 5.50% | 6.75% | 125bps | +15bps |
| HoustonUS | 5.75% | 7.00% | 125bps | +30bps |
| ChristchurchNZ | 5.75% | 7.25% | 150bps | +20bps |
| AdelaideAU | 5.75% | 7.25% | 150bps | +25bps |
Methodology
Cap rates represent prime-grade (institutional quality, long WALE, strong covenant) and secondary-grade (older stock, shorter WALE, smaller tenants) industrial/logistics assets.
Data is sourced from JLL, CBRE, and Colliers capital markets reports. Where sources differ, we report the midpoint. Cap rates represent indicative market yields, not specific transaction evidence.
Year-over-year change is expressed in basis points (bps). One basis point = 0.01%. An increase in cap rate represents yield expansion (lower relative pricing).
Sources
- JLL, Industrial Capital Markets Report Q1 2026 (US, AU) Accessed 2026-05-20.
- CBRE, Cap Rate Survey H1 2026 (US, AU, NZ) Accessed 2026-05-20.
- Colliers, Industrial Investment Review Q1 2026 (NZ, AU) Accessed 2026-05-20.
Cite this report
SCAYLED (2026). Warehouse and Industrial Cap Rates 2026: Yield Benchmarks by Market. Retrieved from https://scayled.com/data/warehouse-cap-rates-2026
Free to quote with attribution. Creative Commons CC BY 4.0.
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