What is the typical exit cap rate range for office assets?

The typical exit cap rate range for office assets is most accurately represented by the range of 5-6.5%. This range reflects the prevailing market conditions and the risk associated with investing in office properties. Cap rates are influenced by various factors, including the location of the property, the overall economic environment, interest rates, and the specific characteristics of the asset itself.

For office assets, a cap rate within this range indicates a balance between the expected income stream from the property and the level of risk perceived by investors. A lower cap rate, such as those found in the 4-5% range, is typically associated with high-quality, prime properties in strong markets, while higher cap rates reflect greater risk or less desirable properties. This dynamic helps in understanding how market conditions affect valuations and investor returns.

In summary, the 5-6.5% cap rate for office assets aligns with current market practices and expectations, making it the correct choice for this question.