Share:

Perspective: Q2 2017 Commercial Real Estate Cap Rates Across Canadian Markets

Stuart Barron • 8/17/2017
The desire to own trophy office assets, fueled by strengthening fundamentals in growth markets, continued to nudge CBD office cap rates downwards in Toronto, Ottawa and the Waterloo region during the second quarter of 2017.

Modest cap rate compression in downtown Toronto was driven in part by upward pressure on Class A rental rates within a very tight CBD market. Tenants will see little relief until 81 Bay Street and 16 York Street open for business in late 2020.

Canadian interest rates began creeping up in July 2017, though the 25-basis point increase has had little effect on investor interest. Continued rate increases would ultimately dampen the red-hot demand by owner/users and investors for lower-priced commercial real estate. For now, this segment continues to sell near or at record prices.

RELATED INSIGHTS

Q2 2018 Perspective Report
Research • Investment

Perspective Report: Q2 2018

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
Q1 2018 Perspective Report
Research • Investment

Perspective Report: Q1 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.
Stuart Barron • 5/14/2018
Canadian Seniors Housing Industry Overview
Research • Valuation

Canadian Seniors Housing Industry Overview

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

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.