CANADA CAP RATE REPORT - Research & Forecast Report - Colliers International
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Research & Forecast Report CANADA CAP RATE REPORT Third Quarter 2019
TORONTO
TIM LOCH
Q3 2019 CAP RATES Senior Director, Greater Toronto
Area
DOWNTOWN OFFICE +1 416 816 7413
A B TREND
LOW HIGH LOW HIGH A B
3.75% 4.75% 4.50% 5.50%
WHAT'S TRENDING
SUBURBAN OFFICE The overall trends witnessed throughout the GTA
investment market in the first half of the year have
A B TREND persisted into the third quarter of 2019. Generally,
well leased and well located assets are highly sought
LOW HIGH LOW HIGH A B
after by potential investors, however fewer offerings
5.75% 6.75% 6.75% 7.75% are coming to market as current owners are holding
these types of properties while rents escalate. This
has lowered overall sales volumes in three of the
INDUSTRIAL four major asset classes on a year over year basis
during the quarter, with multi-family apartments
SINGLE-TENANT A MULTI-TENANT B TREND being the exception. As a result, some investors
LOW HIGH LOW HIGH A B
in the GTA have turned to assets that would have
previously been outside of their investment criteria
4.00% 5.00% 4.75% 5.75% in order to deploy capital and potentially find better
returns. Those trophy assets that do come to market
are generally highly sought after and are trading at
RETAIL or near record highs.
REGIONAL / POWER COMMUNITY STRIP MALL TREND One of the larger transactions for the quarter
LOW HIGH LOW HIGH LOW HIGH R C S
was the portfolio sale of twelve apartment
buildings by Akelius. The total transaction
4.25% 5.00% 5.25% 6.00% 4.75% 5.75% p p consisted of 628 units and was purchased by
Starlight for $176.8 million or just over $280,000
per unit. Starlight has been one of the most active
MULTIFAMILY investors in the province among all assets
classes, completing multiple transactions
HIGH-RISE LOW-RISE TREND
throughout the year at an estimated total value
LOW HIGH LOW HIGH H L of roughly $635 million.
3.50% 4.50% 3.00% 4.00%
HOTEL
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
4.50% 5.50% 5.50% 6.75% 7.00% 8.00%
1 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
MONTREAL
MICHEL COLGAN
Q3 2019 CAP RATES Managing Director, Montreal
+1 514 764 8192
DOWNTOWN OFFICE michel.colgan@colliers.com
A B TREND
LOW HIGH LOW HIGH A B 2285 Saint-Mathieu for $34,750,000 or $250,000/unit; Le
5.00% 5.75% 5.75% 6.25% WHAT'S TRENDING
2050 Claremont a Multi-Residential Property of 33 units
for $7,725,000 ($234,091/unit); and the 5050 Roslyn, 34
Optimismbuilding
residential is still the
for trend for the or
$7,300,000 Montréal Real per unit.
$214,706
SUBURBAN OFFICE Estate Market in 2019, and specifically i n t he
Industrial and Multi-Residential Market.
A B TREND
LOW HIGH LOW HIGH A B
There has been lots of recent activity within the
Montreal industrial market on both the leasing
6.75% 7.75% 7.25% 8.25% and transaction side with two large portfolios
coming to market during the quarter. Two of
the larger transactions for the quarter include
INDUSTRIAL 6000 Autoroute Transcanadienne which traded
for $25,500,000 ($130/SF), and 7300
SINGLE-TENANT A MULTI-TENANT B TREND
Transcanada Highway which sold at a price of
LOW HIGH LOW HIGH A B $14,600,000 ($149/SF).
5.25% 5.75% 5.75% 6.50% The multi-residential market is still very
active as well, with many transactions closing
in the quarter. Recent major transactions
RETAIL include 1575 Summerhill in Ville-Marie Borough
at a price of $22,325,000 ($360,000/unit) and
REGIONAL / POWER COMMUNITY STRIP MALL TREND
Bourret Street Portfolio (7 buildings) in Côte-
LOW HIGH LOW HIGH LOW HIGH R C S des-Neiges/Notre-Dame-de Grace Borough which
was purchased for $55,060,000 or $170,000 per
4.75% 6.50% 6.50% 7.25% 6.00% 7.00% unit.
The office market remains stable with some
MULTIFAMILY recent transactions: 600 and 700 de la
Gauchetière West for $187,000,000 ($245/SF)
HIGH-RISE LOW-RISE TREND
and $322,500,000 ($345/SF), and the
LOW HIGH LOW HIGH H L 6650-6666 St-Urbain for $153,000,000 or
$417/SF.
3.00% 4.50% 4.75% 5.75%
Lastly, the retail market was relatively quiet
during the quarter and still continues
HOTEL restructuring as new stores open and others
close. No major recent transactions occurred
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
during the quarter.
LOW HIGH LOW HIGH LOW HIGH U S L
6.00% 8.00% 7.25% 8.50% 8.50% 9.75%
2 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
CALGARY
MARK BERESTIANSKY
Q3 2019 CAP RATES Managing Director, Calgary
+1 403 298 0419
DOWNTOWN OFFICE mark.berestiansky@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
6.00% 6.75% 7.00% 8.50%
WHAT'S TRENDING
SUBURBAN OFFICE Investor sentiment toward Calgary remains cautious
as the Oil & Gas sector continues to experience
A B TREND subdued commodity pricing and political pressure.
LOW HIGH LOW HIGH A B
Capitalization rates have remained stable this quarter
6.25% 6.75% 7.00% 8.25% across the broader real estate market. Healthy
population growth in the City has contributed to a
strengthening Multi-Family segment with a decrease
INDUSTRIAL in overall vacancy throughout 2019. Demand for
Industrial assets also remains strong particularly
SINGLE-TENANT A MULTI-TENANT B TREND for assets in the distribution and logistics space.
LOW HIGH LOW HIGH A B
5.25% 6.00% 5.50% 6.75%
RETAIL
REGIONAL / POWER COMMUNITY STRIP MALL TREND
LOW HIGH LOW HIGH LOW HIGH R C S
5.25% 6.00% 5.25% 6.00% 5.50% 6.50%
MULTIFAMILY
HIGH-RISE LOW-RISE TREND
LOW HIGH LOW HIGH H L
4.00% 4.75% 4.25% 5.25%
HOTEL
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
7.25% 9.25% 7.75% 9.25% 8.50% 10.50%
3 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
VANCOUVER
JAMES GLEN
Q3 2019 CAP RATES Vice President, Vancouver
+1 604 681 4111
DOWNTOWN OFFICE james.glen@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
3.50% 4.50% 3.50% 4.50%
WHAT'S TRENDING
SUBURBAN OFFICE Industrial and apartment assets have seen the
majority of large transaction size over the last few
A B TREND months.
LOW HIGH LOW HIGH A B
Fama Business Park in Surrey sold for just over $66
4.75% 5.75% 5.25% 6.50% million and a cap rate in the sub-4 range. 16060
Blundell Road, a 247,000+ sf warehouse facility
in east Richmond also traded. Below market rents
INDUSTRIAL continue to compress cap rates on most deals.
SINGLE-TENANT A MULTI-TENANT B TREND On the multi-family side, Montecito Towers in
Burnaby sold at $90 million, with a cap rate in the
LOW HIGH LOW HIGH A B
high two/low three percent range. Surrey Gardens
3.25% 4.75% 3.50% 5.00% in north-west Surrey, sold for $43.5 million,
or approximately $195,000 per door. Fusion, a
new, purpose built rental building in Surrey City
RETAIL Centre, was acquired for $56.0 million, or
approximately $383,500 per door to Centurion
REGIONAL / POWER COMMUNITY STRIP MALL TREND Apartment REIT.
LOW HIGH LOW HIGH LOW HIGH R C S
Office and retail sales activity has been quiet for
3.75% 5.50% 4.00% 5.75% 4.00% 5.50% larger deals, but smaller deals continue to happen –
Boucher Centre in New Westminster traded for
$15.05 million and a 5% cap rate. ML Plaza in
MULTIFAMILY Abbotsford sold for $15.0 million and a 4.6% cap
rate.
HIGH-RISE LOW-RISE TREND
LOW HIGH LOW HIGH H L
2.50% 3.25% 2.75% 4.00%
HOTEL
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
4.00% 5.00% 5.50% 6.75% 6.50% 8.00% q q
4 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
EDMONTON
JOEL ANDRESEN
Q3 2019 CAP RATES Managing Director, Edmonton
+1 780 969 3041
DOWNTOWN OFFICE joel.andresen@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
6.00% 7.00% 6.50% 7.50% WHAT'S TRENDING
Q3 2019 saw another quarter pass without
SUBURBAN OFFICE strong cap rate indicators for office buildings. The
A B TREND announced sale of 29 floors of office space within
the Stantec Tower to German real estate fund Deka
LOW HIGH LOW HIGH A B Immobilien for $502M reflects a positive long-term
6.25% 7.25% 6.75% 7.75%
view of the Edmonton market by global investors. A
cap rate had not been reported as of the writing of
this report.
INDUSTRIAL The retail investment market was active during the
SINGLE-TENANT A MULTI-TENANT B TREND third quarter with retail cap rates remaining stable.
Industrial sales activity was limited with small assets
LOW HIGH LOW HIGH A B showing cap rate stability. Larger buildings with
5.75% 6.75% 6.00% 7.00%
functional or vacancy issues are in lower demand
and cap rates may approach or exceed 7.00%. All
9 multi-family transactions during Q3 are located
within established core areas and demonstrated
RETAIL
cap rate stability. Suburban product continues to be
REGIONAL / POWER COMMUNITY STRIP MALL TREND in low demand with no sales occurring.
LOW HIGH LOW HIGH LOW HIGH R C S The Metropolitan Edmonton Hotel Market remains
5.25% 6.00% 5.50% 6.25% 5.50% 6.50%
weak. Although Downtown Edmonton hotels have
been relatively stable, South Edmonton and West
Edmonton hotels have experienced declines to
RevPAR. Capitalization rates remain low due to the
MULTIFAMILY expectation of income upside potential.
HIGH-RISE LOW-RISE TREND
Capitalization rates in Q4 are generally anticipated
LOW HIGH LOW HIGH H L to remain stable, especially within the retail and
multi-family sectors. Uncertainty within the office
3.75% 5.00% 5.25% 6.25%
market will likely continue, barring multiple sales in
Q4. New additions to the industrial market supply
may nudge the vacancy rate up and cause investors
HOTEL to be more cautious.
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
7.50% 9.50% 8.25% 9.50% 8.75% 10.75%
5 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
OTTAWA
OLIVER TIGHE
Q3 2019 CAP RATES Managing Director, Ottawa
+1 613 683 2225
DOWNTOWN OFFICE oliver.tighe@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
5.00% 6.00% 6.00% 7.25% p WHAT'S TRENDING
The third Quarter of 2019 reinforced many of the
SUBURBAN OFFICE trends that began early in the year. The retail market
A B TREND
continues to be in flux, most buyers are seeking well
tenanted smaller bay assets in attractive locations
LOW HIGH LOW HIGH A B or assets with a good opportunity to be repositioned
or redeveloped. Big box retail developments with
6.25% 7.00% 7.00% 7.75% p p
an increased number of fashion retailers and / or
vacancy are experiencing tempered demand from
buyers. The office market in Ottawa remains strong
INDUSTRIAL with good demand for good quality assets, though
SINGLE-TENANT A MULTI-TENANT B TREND purchasers are increasingly placing little value on
vacant space given the uncertainty in timing for
LOW HIGH LOW HIGH A B
leasing up vacant spaces. The multi-family market
5.00% 6.50% 5.50% 6.50% q q continues the same trends seen for the last 1.5
years, with ample new development underway, low
vacancy, increasing rents and new projects being
RETAIL announced/commenced every month.
REGIONAL / POWER COMMUNITY STRIP MALL TREND The Industrial market has the most interesting story
of the four key asset classes. Demand for industrial
LOW HIGH LOW HIGH LOW HIGH R C S space in Ottawa from both tenants and owner users
5.00% 6.00% 6.00% 6.50% 6.00% 7.00% p p p
is at levels not previously seen. A large factor in
this high demand is due to the fact that it is difficult
to make financial s ense o f c onstructing a n ew
industrial building. Developers need to achieve
MULTIFAMILY
$15 + per square foot net rents to justify new
HIGH-RISE LOW-RISE TREND construction, while market rental rates are trending
in the $10 - $13 range. High land pricing in addition to
LOW HIGH LOW HIGH H L
increasing construction costs along with expensive
4.25% 4.75% 4.25% 5.25% development charges has made the construction
of new industrial cost-prohibitive in most cases.
As a result, buyers are willing to pay a premium
HOTEL for existing buildings over constructing new given
they do not undertake the risk and timing associated
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND with new construction. As we move through 2019
LOW HIGH LOW HIGH LOW HIGH U S L
we expect industrial rental rates to rise which may
spur new development though at present little
6.00% 7.75% 7.50% 8.50% 8.50% 10.00% new development is planned throughout the City
6 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
WINNIPEG
ROB PRETEAU
Q3 2019 CAP RATES Senior Associate, Winnipeg
+1 204 926 3827
DOWNTOWN OFFICE rob.preteau@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
5.50% 6.25% 6.00% 6.75%
WHAT'S TRENDING
SUBURBAN OFFICE With interest rates starting to decrease again,
the demand for investment property in Winnipeg
A B TREND continues to be strong. Fall is expected to be a busy
LOW HIGH LOW HIGH A B
month for transactions. The industrial sector has seen
an increased demand for multi-tenant investment
N/A N/A 6.00% 6.75% property. Industrial property in Winnipeg continues to
be the most desirable asset class for investors with
vacancy rates hovering around 3.0%. Cap rates for
INDUSTRIAL most industrial transactions are currently in the 6.25%
to 7.0% range with downward pressure on industrial
SINGLE-TENANT A MULTI-TENANT B TREND
cap rates becoming the norm.
LOW HIGH LOW HIGH A B
The multi-family market saw a significant amount
6.25% 7.00% 6.25% 7.00% of new construction in 2019 with a large amount of
projects underway that will be completed in 2020.
Cap rates for multi-family property are typically in
RETAIL the 5.0%-6.0% range, with most new construction
projects being valued in the 5.25% - 5.50% cap rate
REGIONAL / POWER COMMUNITY STRIP MALL TREND
range. The demand for multi-tenant retail property
LOW HIGH LOW HIGH LOW HIGH R C S continues to be strong with the lack of good quality
inventory in the retail sector holding cap rates steady
6.00% 6.50% 6.00% 6.75% 6.00% 6.75% over the past year. Cap rates for retail properties in
Winnipeg are typically in the 6.0% to 6.5% range for
most transactions and the demand for good quality
MULTIFAMILY multi-tenant retail investment property continues to
be high. The office sector has seen an increase in
HIGH-RISE LOW-RISE TREND
vacancy rates due to tower one of True North Square
LOW HIGH LOW HIGH H L opening. The result of this additional office space is
increased vacancy within downtown and downward
5.00% 6.00% 5.00% 6.00% pressure on rental rates for class A buildings located
at Portage and Main.
HOTEL
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
7.75% 9.25% 8.50% 9.75% 9.50% 11.00%
7 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers InternationalHALIFAX
MITCH WILE
Q3 2019 CAP RATES Managing Director, Halifax
+1 902 442 8701
DOWNTOWN OFFICE mitch.wile@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
6.25% 7.25% 7.25% 8.25% Also in October Strathallen acquired a 44-property portfolio
WHAT'S TRENDING
p
frortfolio included the Gander Shopping Centre (a Walmart-
anchored 240,000 sq ft sho
SUBURBAN OFFICE The capital recycling trend continued over the past
quarter as Crombie REIT and Choice Properties
A B TREND
REIT both divested national portfolios - consisting
LOW HIGH LOW HIGH A B primarily of secondary and tertiary market, free
stand grocery properties - to the Oak Tree Capital
6.50% 7.25% 7.25% 8.25% Group out of the U.S. Numerous assets were
located in Atlantic Canada.
INDUSTRIAL GWLRA are in the process of divesting of a 3
property multifamily portfolio in Halifax. The big
SINGLE-TENANT A MULTI-TENANT B TREND
development is the announcement by QuadReal that
LOW HIGH LOW HIGH A B they intend to recycle their entire Halifax portfolio,
consisting of 13 apartment properties, 7 of which
6.25% 7.00% 6.75% 7.75% are prominently located in the downtown core. The
divestiture of such assets is reflective of a National
trend to move out of mature assets (from an NOI
RETAIL perspective), more often located in smaller markets,
in favour of re-investment into higher growth or
REGIONAL / POWER COMMUNITY STRIP MALL TREND
mixed use opportunities in larger markets.
LOW HIGH LOW HIGH LOW HIGH R C S
There are finally signals that some of the Class B and
5.50% 6.25% 7.00% 8.00% 6.25% 7.50% p p C office properties in the downtown core are being
considered for conversion for to multi residential,
which we have expected to occur for some time
MULTIFAMILY now. Such a move will improve the health of the
office market by reducing supply and bringing more
HIGH-RISE LOW-RISE TREND
residents downtown, further contributing to the
LOW HIGH LOW HIGH H L energizing of the CBD.
4.65% 5.00% 4.85% 6.00% Encouraging rent growth across many multi res and
industrial markets is evident, which coupled with
the ability to refinance at lower interest rates is
HOTEL resulting in improved valuations and enhanced cash
flows.
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND
LOW HIGH LOW HIGH LOW HIGH U S L
7.00% 8.50% 8.25% 9.75% 9.50% 11.00%
8 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers InternationalVICTORIA
ANDREW BUHR
Q3 2019 CAP RATES Associate, Victoria
+1 250 414 8371
DOWNTOWN OFFICE andrew.buhr@colliers.com
A B TREND
LOW HIGH LOW HIGH A B
5.00% 5.25% 5.25% 5.50%
WHAT'S TRENDING
SUBURBAN OFFICE Victoria’s strong local economy continues to be a
factor in the stability of the investment market across
A B TREND all asset classes. Persistently low interest rates and
a growing consumer interest in rental product in the
LOW HIGH LOW HIGH A B multifamily sector, combined with limited options
for purchase, have resulted in new developments
5.25% 5.50% 5.50% 5.75%
and strong interest in existing investment grade
product as they become available. No significant
office capitalization rate deals were reported in this
INDUSTRIAL quarter.
SINGLE-TENANT A MULTI-TENANT B TREND Within the industrial market, 2612 Bridge St. traded
LOW HIGH LOW HIGH A B
at an initial cap rate in the order of 7% prior to
planned capital expenditures which also included
5.00% 5.25% 5.25% 5.50% another property at 429/432 Hillside Ave. Bordering
the Burnside area of Victoria and Saanich, the
purchase of 400E Burnside Road for $5.5M also
included the sale of the business assets as part of
RETAIL the transaction.
REGIONAL / POWER COMMUNITY STRIP MALL TREND
Within the suburban retail market of the Westshore,
LOW HIGH LOW HIGH LOW HIGH R C S the portfolio sale of First Capital included Langford
Plaza, Goldstream Station Mall and Langford Centre
5.25% 5.50% 5.25% 5.50% 5.25% 5.50% totaling approximately $37.2M showed going in cap
rates of approximately 5.5% and above.
The multi-family market included the Aug. 2019
MULTIFAMILY transaction at 433-437 Boleskine Rd., a 95-unit,
HIGH-RISE LOW-RISE TREND newly completed building with 1 commercial unit on
the main level, at $32.7M or approximately $344K
LOW HIGH LOW HIGH H L per unit and a reported 4.25% cap rate, more or
less. The suburban market recorded the $57M
4.00% 4.25% 4.25% 4.50% Sept. 2019 sale of Enclave and Meaford Heights to
Skyline REIT at a combined capitalization rate in the
order of 4.75%.
HOTEL
As has been the case in previous quarters this
URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND year, limited investment activity this quarter relates
directly to the lack of good quality income properties
LOW HIGH LOW HIGH LOW HIGH U S L
available in the Victoria market, and not demand,
6.00% 7.00% 7.00% 9.00% 8.00% 10.00% as the overall market sentiment indicates continued
confidence in the Greater Victoria investment
market for the final quarter of 2019.
9 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers InternationalCanada Cap Rate Report DOWNTOWN OFFICE MARKET A B TREND CITY LOW HIGH LOW HIGH A B Vancouver 3.50% 4.50% 3.50% 4.50% Calgary 6.00% 6.75% 7.00% 8.50% Edmonton 6.00% 7.00% 6.50% 7.50% Toronto 3.75% 4.75% 4.50% 5.50% Ottawa 5.00% 6.00% 6.00% 7.00% p Montreal 5.00% 5.75% 5.75% 6.25% Winnipeg 5.50% 6.25% 6.00% 6.75% Halifax 6.25% 7.25% 7.25% 8.25% p Victoria 5.00% 5.25% 5.25% 5.50% SUBURBAN OFFICE MARKET A B TREND CITY LOW HIGH LOW HIGH A B Vancouver 4.75% 5.75% 5.25% 6.50% Calgary 6.25% 6.75% 7.00% 8.25% Edmonton 6.25% 7.25% 6.75% 7.75% Toronto 5.75% 6.75% 6.75% 7.75% Ottawa 6.25% 7.00% 7.00% 7.75% p p Montreal 6.75% 7.75% 7.25% 8.25% Winnipeg N/A N/A 6.00% 6.75% Halifax 6.50% 7.25% 7.25% 8.25% Victoria 5.25% 5.50% 5.50% 5.75% 10 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
Canada Cap Rate Report INDUSTRIAL MARKET SINGLE-TENANT A MULTI-TENANT B TREND CITY LOW HIGH LOW HIGH A B Vancouver 3.25% 4.75% 3.50% 5.00% Calgary 5.25% 6.00% 5.50% 6.75% Edmonton 5.75% 6.75% 6.00% 7.00% Toronto 4.00% 5.00% 4.75% 5.75% Ottawa 5.00% 6.50% 5.50% 6.50% q q Montreal 5.25% 5.75% 5.75% 6.50% Winnipeg 6.25% 7.00% 6.25% 7.00% Halifax 6.25% 7.00% 6.75% 7.75% Victoria 5.00% 5.25% 5.25% 5.50% MULTIFAMILY MARKET HIGH-RISE LOW-RISE TREND CITY LOW HIGH LOW HIGH H L Vancouver 2.50% 3.25% 2.75% 4.00% Calgary 4.00% 4.75% 4.25% 5.25% Edmonton 3.75% 5.00% 5.25% 6.25% Toronto 3.50% 4.50% 3.00% 4.00% Ottawa 4.25% 4.75% 4.25% 5.25% Montreal 3.00% 4.50% 4.75% 5.75% Winnipeg 5.00% 6.00% 5.00% 6.00% Halifax 4.65% 5.00% 4.85% 6.00% Victoria 4.00% 4.25% 4.25% 4.50% 11 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
Canada Cap Rate Report HOTEL MARKET URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND CITY LOW HIGH LOW HIGH LOW HIGH U S L Vancouver 4.00% 5.00% 5.50% 6.75% 6.50% 8.00% q q Calgary 7.25% 9.25% 7.75% 9.25% 8.50% 10.50% Edmonton 7.50% 9.50% 8.25% 9.50% 8.75% 10.75% Toronto 4.50% 5.50% 5.50% 6.75% 7.00% 8.00% Ottawa 6.00% 7.75% 7.50% 8.50% 8.50% 10.00% Montreal 6.00% 8.00% 7.25% 8.50% 8.50% 9.75% Winnipeg 7.75% 9.25% 8.50% 9.75% 9.50% 11.00% Halifax 7.00% 8.50% 8.25% 9.75% 9.50% 11.00% Victoria 6.00% 7.00% 7.00% 9.00% 8.00% 10.00% RETAIL MARKET REGIONAL / POWER COMMUNITY STRIP MALL TREND CITY LOW HIGH LOW HIGH LOW HIGH R C S Vancouver 3.75% 5.50% 4.00% 5.75% 4.00% 5.50% Calgary 5.25% 6.00% 5.25% 6.00% 5.50% 6.50% Edmonton 5.25% 6.00% 5.50% 6.25% 5.50% 6.50% Toronto 4.25% 5.00% 5.25% 6.00% 4.75% 5.75% p p Ottawa 5.00% 6.00% 6.00% 6.50% 6.00% 7.00% p p p Montreal 4.75% 6.50% 6.50% 7.25% 6.00% 7.00% Winnipeg 6.00% 6.50% 6.00% 6.75% 6.00% 6.75% Halifax 5.50% 6.25% 7.00% 8.00% 6.25% 7.50% p p Victoria 5.25% 5.50% 5.25% 5.50% 5.25% 5.50% 12 Cap Rate Report | Q3 2019 | Canada / Valuation & Advisory Services | Colliers International
11 offices REGIONAL AUTHORS:
Michel Colgan | Managing Director, Montreal
90 professionals Mark Berestiansky | Managing Director, Calgary
James Glen | Vice President, Vancouver
Tim Loch | Senior Director, Greater Toronto
Across Canada Joel Andresen| Managing Director, Edmonton
Oliver Tighe | Managing Director, Ottawa
Mitch Wile | Managing Director, Halifax
Rob Preteau | Senior Associate, Winnipeg
Andrew Buhr| Associate, Victoria
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Ottawa, Winnipeg, Halifax, Niagra Falls, Victoria and Kelowna.
Colliers International Valuation & Advisory Services offers a full range of services including valuation,
property tax consulting and advisory services. The team also offers customized valuations for specialty real
estate including hotels, resorts and multi-residential developments. From a single commercial asset to a
national portfolio of properties, we provide you with accurate and timely information that will help you better
understand the value of your assets and make business decisions accordingly.
www.collierscanada.com/valuation
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The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
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