To begin with, there is no typical of anything; you must determine what market segment you want to derive the cap rate for; are you looking at Multifamily, Office space, retail, industrial space and what specific demographic/geographic area in the San Jose. Then you need a quality source for this information, one that you trust, one that uses sound principles of real estate appraisal.
1) Search out multiple comparable properties, recent sales from the local property appraisers office/web will suffice (make sure they are compatible and in in same area.
2) inquire and obtain income and expense of each to determine (NOI) net operating income
3) Divide the NOI by the Valuation determined for the comparable property to get the capitalization Rate for property
Now do the same for all the comparable properties you selected and determine their CAP rates; average them out to determine a market area CAP rate for that type of property. Please note results may vary by demographic area and selection of comparable properties, it is a precarious art-form and not all results are the same and each investors weighs-in this data differently when making decisions.
If you have any questions on using CAP Rates to make sound investments in the Tampa Bay area or in Florida contact me: 813-514-8168 or at ShorebirdRealty@outlook.com
Sep 24, 2015