Share:

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

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

Canada VA Innsight Q3 2020 (image)
Insights • Hospitality

Q3 2020 INNsight Quarterly

Highlights the top topics the Canadian hospitality industry is facing, along with a glance at the hotel cap rates across Canadian markets.
Brian Flood • 11/2/2020
Data Center Update Web Card
Research • Data Center

Canada Data Center Update | Summer 2020

The two major Canadian data center markets had impressive starts to the year, with Toronto reaching its best half of absorption on record and Montreal with its best half in three years.
Dave Fanning • 9/8/2020
window view (image)
Insights • Hospitality

Q2 2020 INNsight Quarterly

Highlights the top topics the Canadian hospitality industry is facing, along with a glance at the hotel cap rates across Canadian markets.
Brian Flood • 8/13/2020

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.