16 July 2018

“Quarter-to-quarter, suburban multi-unit residential and industrial products may show lower cap rates in Toronto,” – the report says. “Tier 1 Regional Malls and downtown Class ‘AA’ office cap rates will stay flat, following a small increase in retail and a cap rate compression in case of offices in the previous quarter.”

According to Altus, although the second quarter reported a slight drop of the Overall Capitalization Rate to 5.07% (down from 5.10% of Q1 2018 and 5.15% of Q2 2017), the national investment activity in Q1 still showed $13.2 billion, rising from the previous year’s $12.7 billion.

The report says investors’ interest in Canada’s housing is still strong and with growth in employment and a healthy job market, the demand for office in urban centres keeps showing modest gains.

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