Perspective: Q2 2018 Commercial Real Estate Cap Rates in Major Canadian Markets
Stuart Barron • 8/8/2018
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.
Canadian real estate markets continued attracting strong investor interest in the second quarter, particularly across secondary markets and yield-advantaged asset classes. Solid fundamentals acted as a buffer against headwinds generated by rising interest rates, such as increasing debt service costs which are beginning to slow retail spending by debt-ridden Canadians.
Research • Investment
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
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