Canada Cap Rate Q1 2016

Canada Cap Rate Report Highlights Q1 2016

The outlook for the Canadian real estate market varies throughout the country. While real estate in Alberta remains depressed, cities such as Toronto remain strong.

Canada Cap Rate Report Q1 2016


  • Edmonton is beginning to see a division emerging amongst its inventory, especially in the downtown office market.
  • Edmonton’s economy continues to reposition following the oil price decline.


  • The overall sentiment of investors toward Calgary real estate has remained very cautious in the first quarter of 2016.
  • There have been virtually no material office transactions in Calgary over the past year, as buyer and seller expectations are not aligned.


  • Foreign investment has started to emerge in Toronto due the weakening Canadian dollar.
  • There is a downward pressure on capitalization rates for quality, investment-grade product even through economic softness in Toronto.


  • All real estate assets in Montreal, including office, retail, industrial, multi-residential and hotel have remained stable since Q4 2015.


  • Winnipeg will see downward pressure from a lack of supply of high-quality real estate assets, and a low interest rate environment will push capitalization rates lower as we move through 2016.


  • The investment market is high given the influx of demand and, consequently, increasing prices for many assets. Vancouver will see low capitalization rates for well-located or quality product throughout Q1 2016.
  • However, the real estate market continues to thrive as large amounts of Chinese corporate dollars are flooding the marketplace.


  • The Ottawa commercial real estate market has continued to set trends over the last 16 months with ongoing low transaction activity.
  • However, as we move through 2016, we anticipate transaction activity to pick up.


  • Despite capital market pressures, commercial real estate markets have remained stable with continued strong demand for quality assets, and little downward pressure on capitalization rates.

> Download the Canada Cap Rate Report Q1 2016

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