The cap rate for assets sited on leased land in Southern California is like the cap rate for leased land assets elsewhere. It depends on the type of property on the land, the length of the lease, the options, the potential increases and the location of the asset. In a broad stroke you should realize that the cap rate should be about 200+ basis points over fee. I have seen NNN, single tenant properties at 8%-9%, office buildings at 11%-12% and commercial centers in the 9%-10% range. I believe all of these might be considered typical.
Good luck George.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: firstname.lastname@example.org
Jan 3, 2011