Perspective: Q1 2018 Commercial Real Estate Cap Rates in Major Canadian Markets
Stuart Barron • 5/14/2018
With the Bank of Canada’s overnight lending rate up 75 basis points since last summer, rising to 1.25%, and further bumps expected through 2018, subtle changes are occurring in specific markets and asset classes. These glimpses offer the first evidence that cap rate compression may be reaching a tipping point as we head into the ninth year of a record-long growth cycle.
Make no mistake though; despite rising interest rates and other dampening factors, the vast majority of individual markets and asset classes saw cap rate stability and in some cases, further compression. Overall demand for commercial real estate in Canada remains ferocious, fueled by sound real estate fundamentals, transformative change, and an abundance of capital seeking long-term investment opportunities.
Research • Investment
Stability and further sporadic compression remain trends across Canadian markets, in spite of four incremental interest rate hikes over the past year by the Bank of Canada. Such resilience is underpinned by solid fundamentals that continue to fuel fierce demand for commercial real estate.Stuart Barron • 8/8/2018
Research • Valuation
Cushman & Wakefield’s Valuation & Advisory Seniors Housing & Heathcare Practice Group provides consulting and valuation services for new and existing seniors housing properties. We are pleased to share our latest Seniors Housing Industry Overview.Sean McCrorie • 2/20/2020