PERSPECTIVE: Q4 2018 Commercial Real Estate Cap Rates in Major Canadian Markets

Stuart Barron • 3/13/2019
A shadow was cast over global economic growth at the close of 2018 due to mounting concerns about the potential for U.S.-led trade wars, a deteriorating euro zone outlook, and turmoil surrounding Brexit.

Meanwhile, at home, international oil prices, such as West Texas Intermediate, plunged by more than $25 U.S. a barrel in the fourth quarter, shaking up the fragile recovery underway in Alberta.

The silver lining in this somewhat gloomy picture was the more conservative stance taken by the Federal Reserve and the Bank of Canada to hold back on rate hikes until the conditions that impact tomorrow’s market are better understood. While opinions vary, interest rates are unlikely to rise more than 25-basis-points over the next 24 months – and could conceivably be lowered if growth slows further. So, for now, you can count a continued low interest rate environment, which could extend this long-run boom cycle through 2019 and possibly 2020.

RELATED INSIGHTS

Q2 2019 Perspective Report
Research • Investment

Perspective Report: Q2 2019

Uncertainty is the watchword of the day as world economies grapple with trade wars, Brexit, political turmoil and weakening economic fundamentals.
Stuart Barron • 8/27/2019
Waterloo Downtown Aerial
MarketBeat • Insights

Waterloo

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Chad Vrenjak • 11/5/2019
Victoria Waterfront Skyline
MarketBeat • Insights

Victoria

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Christian Hammerberg • 11/5/2019

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.