Intelligent Investment
Canadian Cap Rates &
Investment Insights
REPORT
A quarterly snapshot of
Canadian commercial
real estate cap rates
and investment trends.
CBRE RESEARCH
Q4 2021
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Contents
National
Investment Trends
Regional
Investment Trends
26 Cap Rate Summary Sheet
4Investment
13 Victoria
28 Glossary of Terms
5Debt Market
14 Vancouver
6Office
15 Calgary
7Industrial
16 Edmonton
8Retail
17 Saskatoon
9Multifamily
18 Winnipeg
10 Seniors Housing
19 London-Windsor
11 Hotel
20 Kitchener-Waterloo
21 Toronto
22 Ottawa
23 Montreal
24 Quebec City
25 Halifax
2
CBRE RESEARCH
©2021 CBRE LIMITED
01
National
Investment
Trends
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Investment Trends
Investment
Debt Market
Office
— The Canadian commercial real estate investment market continued its run of
impressive performance in Q4 2021. Single asset investment activity was once
again exceptionally robust and the quarter also saw the return of M&A activity
with several significant portfolio transactions and REIT privatizations closing
over the period. National volumes are poised to set a new annual record in
2021, surpassing the $50.0 billion benchmark by a significant margin.
Paul Morassutti
Vice Chairman, Valuation &
Advisory Services
www.cbre.ca/paul.morassutti
— Cap rates declined across nearly all asset classes in Q4 2021. Given
compressed cap rates for industrial and multifamily properties, investors have
become increasingly willing to consider retail, office, and alternative assets in a
search for yield.
— Despite elevated activity levels, the emergence of the Omicron variant brought
uncertainty back to the minds of many entering 2022 with concerns that
future variants could represent the new normal. It remains to be seen how this
will impact investment conviction going forward.
National Average Cap Rate
Industrial
Q4 2021 Cap Rates
Retail
Downtown Office
rQ/Q
Multifamily
rQ/Q
AA
4.88%
tu
High Rise A
3.69%
q
A
5.70%
tu
High Rise B
4.29%
q
B
6.63%
tu
Low Rise A
4.23%
q
Low Rise B
4.69%
q
Suburban Office
Hotel
Victoria
Vancouver
Calgary
6.41%
tu
Seniors Housing
B
7.22%
tu
Independent/
Assisted Living A
6.08%
7.27%
q
Winnipeg
7.39%
q
London-Windsor
Industrial
A
4.38%
q
Independent/
Assisted Living B
B
5.25%
q
Long Term Care A
q
Edmonton
Saskatoon
Kitchener-Waterloo
Hotel
Retail
211 bps
10.0%
7.19%
p
q
Suburban Limited Service
8.56%
p
6.36%
q
Focused Service
7.98%
p
Strip
5.72%
tu
Strip (non-anchored)
6.52%
q
Urban Streetfront
5.47%
tu
Cap Rate Summary
High Street
3.88%
tu
Glossary of Terms
5.50%
tu
Power
6.45%
Neighbourhood
2.0%
0.0%
426 bps
All-Properties National Average Cap Rate
10-Yr GoC Bond Yield
411 bps
2021
2019
2017
2015
2013
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
4.0%
2011
465 bps
231 bps
6.0%
Source: CBRE Research, Refinitiv Eikon, Q4 2021.
Toronto
Downtown Full Service
Regional
8.0%
CBRE RESEARCH
Seniors Housing
A
12.0%
4
Multifamily
Ottawa
Montreal
Quebec City
Halifax
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Debt Market Trends
Investment
Debt Market
Office
— Market spirits were riding high heading into Q4 2021, until the emergence of
the Omicron variant led to a pause in bond markets. By year’s end, the newest
wave of cases had forced additional lockdowns in many countries globally.
— 2021 ended with bond markets signalling a return to rising yields with the Bank
of Canada looking to act more aggressively than the Federal Reserve.
Carmin Di Fiore
Executive Vice President,
Debt & Structured Finance
www.cbre.ca/carmin.difiore
— Headlines and discussions around the globe are now focused not on the
direction, but on how aggressively central banks will initiate rate increases to
deal with inflation threats through 2022.
— A return to social norms, national vaccination rates, stabilized supply chains,
and reliable labour availability will all have a bearing on central banker’s
thoughts throughout the year.
Q4 2021
Change Q/Q
Seniors Housing
5-Year Mortgage Spread Range
1.20% - 3.25%
1.20% - 3.25%
tu
0.00%
1.40% - 3.40%
tu
0.00%
2.45%
$0.7913
p
0.36%
4.00%
0.428%
2.45%
tu
0.00%
0.450%
p
5.26%
q
-0.83%
Western Canadian Select (USD)
$62.72
2.00%
1.00%
$62.20
2020
Dec
Oct
Nov
Sep
Aug
Jul
Jun
Apr
May
Feb
Mar
Jan
Dec
Oct
Nov
Sep
Aug
Jul
Jun
Apr
May
0.00%
Feb
Winnipeg
2021
5-Yr GoC Bond Yield
10-Yr GoC Bond Yield
Kitchener-Waterloo
Toronto
Ottawa
Source: CBRE Limited, Refinitiv Eikon, Q4 2021.
Mar
Edmonton
London-Windsor
30-day CDOR
Jan
Vancouver
Calgary
CAD/USD
5.00%
5-Yr Commercial Mortgage Rate
10-Yr Commercial Mortgage Rate
Hotel
Victoria
10-Year Mortgage Spread Range
1.40% - 3.40%
Multifamily
Saskatoon
3.00%
CBRE RESEARCH
Q3 2021
Canada Prime Rate
Mortgage Rates to Government of Canada Bonds
5
Retail
$0.7885
— Mortgage liquidity in 2022 looks robust with very competitive spreads, but
asset class will dictate whether it is a borrower’s or lender’s market.
Industrial
Market Movers
Montreal
Quebec City
Halifax
Cap Rate Summary
Source: CBRE Research,
Refinitiv Eikon, Q4 2021.
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Office Investment Trends
Investment
Debt Market
Office
Downtown Class B
8%
10%
Edmonton
Saskatoon
Calgary
London-Windsor
Quebec City
Winnipeg
Halifax
Kitchener-Waterloo
Ottawa
Victoria
Montreal
0%
Vancouver
2%
Victoria
-13 bps
Vancouver
Calgary
Suburban Class B
Edmonton
8%
10%
Saskatoon
8%
-62 bps
-62 bps
Calgary
Halifax
Quebec City
Saskatoon
London-Windsor
Edmonton
London-Windsor
Ottawa
Winnipeg
Montreal
Toronto
0%
Vancouver
2%
Victoria
Edmonton
Halifax
London-Windsor
Saskatoon
Quebec City
Winnipeg
Calgary
4%
Kitchener-Waterloo
Winnipeg
6%
Ottawa
Kitchener-Waterloo
Montreal
Toronto
0%
Victoria
7.0%
Vancouver
2%
Kitchener-Waterloo
Toronto
Ottawa
Montreal
5.5%
Quebec City
2018
Downtown Class AA &A
2019
Downtown Class B
2020
Suburban Class A
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
5.0%
CBRE RESEARCH
4%
Suburban Class A
7.5%
6.0%
6
Hotel
Toronto
London-Windsor
Saskatoon
Edmonton
Halifax
Quebec City
Kitchener-Waterloo
-25 bps
4%
6.5%
Seniors Housing
6%
Calgary
Winnipeg
Ottawa
0%
Victoria
4%
2%
Multifamily
8%
6%
6%
Historical Office Cap Rates
Retail
National Average
Downtown Class AA & A
Montreal
— Given that much of the growing optimism for the office sector had been
driven by the perceived nearing of return-to-work plans for many occupiers, it
remains to be seen what impacts the emergence of the Omicron variant and
further lockdowns will have on the sector.
r Q/Q
Cap Rate
Toronto
— The only market to see office cap rates compress in the fourth quarter was
London-Windsor, which saw both Downtown and Suburban cap rates decline.
Industrial
Regional Rankings
Vancouver
— The office sector continued its ongoing recovery in Q4 2021 with investment
activity and leasing velocity both improving in the period. Investor demand for
office assets grew gradually in Q4 2021 as fundamentals began to improve,
although many firms are continuing to await greater clarity on return-to-work
plans from occupiers. The national average office cap rate figures for both
Downtown and Suburban property types remained unchanged over the period.
2021
Suburban Class B
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Industrial Investment Trends
Investment
Debt Market
Office
Retail
National Average
Multifamily
-13
bps
-25 -25
bps bps
-75 -25
bps bps
-13
bps
-37 -50 -50
bps bps bps
-25 -25 -50 -75 -25 -13
bps bps bps bps bps bps
Saskatoon
Quebec City
Winnipeg
Halifax
London-Windsor
Edmonton
Ottawa
Kitchener-Waterloo
0%
Calgary
2%
Victoria
Edmonton
Victoria
0%
Calgary
2%
Montreal
Victoria
Toronto
4%
4%
Vancouver
Hotel
Saskatoon
6%
Quebec City
6%
Winnipeg
Seniors Housing
London-Windsor
8%
Halifax
8%
Kitchener-Waterloo
Industrial Class B
Ottawa
Industrial Class A
Montreal
— Improving on last quarter when eight markets reported declines in industrial
yields, ten markets reported cap rate compression in Q4 2021.
r Q/Q
Cap Rate
Vancouver
— The solid underlying fundamentals for the sector have continued to drive
investment demand and cap rates compressed once again in Q4 2021. The
national average cap rate figures for Class A and Class B industrial properties
declined by 19 bps and 38 bps, respectively, in the quarter. These declines
were by far the largest of any asset class in Q4 2021.
Industrial
Regional Rankings
Toronto
— As has been the case for several years now, the Canadian industrial sector
continued to strengthen over the final period of 2021. Leasing fundamentals
for the asset class continue to improve and many markets are operating at
near full occupancy while rents continue to rise at a record setting pace.
Vancouver
Calgary
Edmonton
Saskatoon
Winnipeg
Historical Industrial Cap Rates
London-Windsor
7.0%
Kitchener-Waterloo
6.5%
Toronto
6.0%
2018
Industrial Class A
7
CBRE RESEARCH
2019
Industrial Class B
2020
2021
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q1
4.0%
Q3
Quebec City
Q2
4.5%
Q1
Montreal
Q4
5.0%
Q3
Ottawa
Q2
5.5%
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Retail Investment Trends
Investment
Debt Market
Office
-25 -38 -25
bps bps bps
-62 bps
Quebec City
Halifax
Calgary
Toronto
London-Windsor
Montreal
Winnipeg
Edmonton
Halifax
Quebec City
Montreal
Winnipeg
Saskatoon
Ottawa
Kitchener-Waterloo
Ottawa
London-Windsor
Halifax
Saskatoon
Quebec City
Edmonton
Kitchener-Waterloo
Winnipeg
Calgary
Ottawa
Montreal
Toronto
0%
Kitchener-Waterloo
Toronto
-25 bps
4%
2%
London-Windsor
Montreal
Vancouver
Quebec City
Halifax
Montreal
6%
Winnipeg
6%
Saskatoon
8%
Ottawa
8%
Edmonton
10%
-25 bps
Edmonton
Calgary
-25 bps
10%
0%
London-Windsor
Winnipeg
Urban Streetfront
2%
Calgary
Saskatoon
Victoria
0%
Vancouver
Edmonton
Strip (Non-Anchored)
4%
Ottawa
Saskatoon
Victoria
Vancouver
Kitchener-Waterloo
-25 bps
4%
2%
Victoria
-25 bps
Victoria
-25 bps
Hotel
Toronto
Quebec City
Halifax
London-Windsor
Edmonton
Winnipeg
-13 bps
Seniors Housing
Vancouver
Quebec City
Halifax
Calgary
Ottawa
-25 bps
Montreal
Calgary
Toronto
Vancouver
Victoria
Saskatoon
6%
Ottawa
6%
Kitchener-Waterloo
8%
Toronto
2021
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
2020
Strip (non-anchored)
Urban Streetfront
Edmonton
Victoria
Toronto
8%
Kitchener-Waterloo
2019
Neighbourhood
Strip
Q4
Q3
Q2
Q1
Vancouver
10%
Victoria
2018
Q4
Q3
Q2
Q1
5.5%
0%
10%
Vancouver
6.0%
2%
Strip
0%
Regional
Power
-25 bps
Multifamily
4%
Neighbourhood
2%
6.5%
London-Windsor
6%
Winnipeg
6%
Saskatoon
8%
Montreal
8%
Kitchener-Waterloo
10%
4%
7.0%
CBRE RESEARCH
10%
Calgary
Historical Retail Cap Rates
8
Power
0%
Retail
National Average
Regional
2%
— Compressed yields in other asset classes, namely industrial and multifamily,
have led investors to the retail sector in a search for yield and it’s expected
that liquidity for retail assets will remain healthy as this newest wave of COVID
cases subsides in coming months.
5.0%
r Q/Q
Cap Rate
4%
— Markets to report movement in retail yields in Q4 2021 included Calgary,
Saskatoon, Winnipeg, London-Windsor, Toronto, Ottawa, and Halifax.
Industrial
Regional Rankings
London-Windsor
— Despite the emergence of the Omicron variant leading to further lockdown
measures being enacted across the country, the retail sector continued
to see increased liquidity and cap rate compression for select property
types in the fourth quarter. In particular, essential service retail assets and
properties with residual development potential continue to garner significant
interest. The national average cap rate figures for the power, neighbourhood,
and unanchored strip property types declined by 3 bps, 5 bps, and 16 bps,
respectively, in Q4 2021.
-25 bps
Regional rankings for High Street retail category not shown.
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Multifamily Investment Trends
Investment
Debt Market
Office
— Markets to report movement in multifamily yields in Q4 2021 included
Vancouver, Edmonton, London-Windsor, Kitchener-Waterloo, Toronto, and
Halifax.
Retail
National Average
-13 bps -5 bps
-25 bps
-5 bps
-25 bps
Quebec City
Winnipeg
Saskatoon
Calgary
Edmonton
Victoria
Halifax
London-Windsor
Ottawa
Kitchener-Waterloo
Montreal
Victoria
0%
Hotel
Toronto
2%
Multifamily
Seniors Housing
Vancouver
0%
Calgary
2%
Quebec City
4%
London-Windsor
4%
Halifax
6%
Edmonton
6%
Kitchener-Waterloo
High Rise Class B
Montreal
High Rise Class A
Ottawa
Executive Vice President,
National Apartment Group
www.cbre.ca/david.montressor
— The highly competitive environment caused the national average cap rate
figures for the High Rise Class A and Class B categories to compress by 2 bps
in Q4 2021, while the national average figures for the Low Rise Class A and
Class B categories each fell by 8 bps.
r Q/Q
Cap Rate
Toronto
David Montressor
Industrial
Regional Rankings
Vancouver
— The multifamily sector continued to benefit from stability in leasing
fundamentals, strong sectoral tailwinds, and a lack of investment options in Q4
2021. Investment demand has continued to climb and cap rates continued to
compress in the fourth quarter despite already tight spreads to government
bond yields. Given rising home prices across the country and a positive
outlook for immigration, it’s expected that liquidity for the asset class will
remain elevated for the foreseeable future.
-25 -13
bps bps
Low Rise Class B
Edmonton
6%
8%
Saskatoon
6%
Winnipeg
4%
London-Windsor
-13 bps -13 bps -38 bps
-75 -13
bps bps
Saskatoon
Winnipeg
Quebec City
Edmonton
London-Windsor
Montreal
Calgary
Halifax
Ottawa
Vancouver
Toronto
Kitchener-Waterloo
0%
Victoria
Winnipeg
Saskatoon
London-Windsor
Quebec City
Calgary
Montreal
Halifax
Ottawa
Victoria
Edmonton
-25 -38
bps bps
Kitchener-Waterloo
Toronto
Montreal
4.0%
Quebec City
2018
High Rise Class A
2019
High Rise Class B
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
3.5%
CBRE RESEARCH
-25 bps
2%
Ottawa
4.5%
9
-13 -25
bps bps
Toronto
0%
Kitchener-Waterloo
2%
Vancouver
Historical Multifamily Cap Rates
5.0%
Calgary
Low Rise Class A
4%
5.5%
Vancouver
Halifax
2020
2021
Cap Rate Summary
Low Rise Class A
Low Rise Class B
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Seniors Housing Investment Trends
Investment
Debt Market
Office
— The Canadian market is seeing significant interest from International investors,
namely from the US, as these firms look to benefit from a more stable industry
landscape and tapering of new supply.
-25 -25 -25 -25 -25 -25 -25
bps bps bps bps bps bps bps
Long Term Care Class A
-25
bps
Halifax
Quebec City
Montreal
Edmonton
Calgary
Ottawa
-25 -25 -25 -25 -25 -25
bps bps bps bps bps bps
Kitchener-Waterloo
Toronto
Winnipeg
Halifax
Saskatoon
Quebec City
Edmonton
Montreal
Ottawa
Toronto
Vancouver
Ottawa
6.0%
Montreal
5.5%
Quebec City
Independent Living/
Assisted Living Class A
2019
2020
Independent Living/
Assisted Living Class B
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
2018
CBRE RESEARCH
Edmonton
6.5%
5.0%
10
Calgary
London-Windsor
Toronto
0%
Kitchener-Waterloo
7.0%
London-Windsor
2%
Vancouver
7.5%
Victoria
4%
-25 -25 -25 -25 -38 -38 -25
bps bps bps bps bps bps bps
Vancouver
Winnipeg
6%
8.0%
0%
Victoria
Saskatoon
10%
8%
Historical Seniors Housing Cap Rates
2%
Victoria
Winnipeg
Halifax
Saskatoon
Quebec City
Edmonton
Calgary
4%
Montreal
Ottawa
0%
Hotel
Calgary
6%
Kitchener-Waterloo
6%
Seniors Housing
London-Windsor
8%
Kitchener-Waterloo
8%
London-Windsor
10%
2%
Multifamily
Independent Living/Assisted Living Class B
10%
4%
Retail
National Average
Independent Living/Assisted Living Class A
Toronto
Senior Vice President,
Healthcare Capital Markets
www.cbre.ca/mathew.burnett
r Q/Q
Cap Rate
Vancouver
Mathew Burnett
— Even with Class A cap rates compressing in key markets, significant increases
in construction costs have allowed investment to remain a favourable strategy
compared to development in many jurisdictions at this time. With the outlook
being that there will be a supply-demand imbalance in the coming years as
new construction lags, buyer pro-formas are increasingly assuming strong
rental rate growth for quality properties.
Industrial
Regional Rankings
Victoria
— As anticipated in previous quarters, 2021 ended with a large number of seniors
housing transactions closing in Q4 2021 or working toward a completion in
early 2022. It’s expected that several significant transactions will be completed
by the end of Q1 2022, largely made up of Class A properties in various
markets across the country.
2021
Long Term Care Class A
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Hotel Investment Trends
Investment
Debt Market
Office
— Preliminary estimates indicate that national RevPAR growth for 2021 will be up
29.0% over 2020, slightly better than originally projected. The improved RevPAR
growth was driven by strong domestic and summer leisure travel seasons which
pushed occupancy past 40.0%, while ADR generally fell in line with expectations.
-25 +25 -25
bps bps bps
+25
bps
+25
bps
+25
bps
-25
bps
+25 -25
bps bps
+25
bps
Saskatoon
Winnipeg
Edmonton
Quebec City
London-Windsor
Halifax
Calgary
Kitchener-Waterloo
Montreal
Ottawa
Victoria
0%
Toronto
2%
Victoria
Vancouver
Calgary
Edmonton
Saskatoon
10%
8%
Winnipeg
-13 +25
bps bps
+25
bps
-25
bps
+25
bps
Saskatoon
Edmonton
London-Windsor
Quebec City
London-Windsor
Winnipeg
Calgary
Halifax
Kitchener-Waterloo
Ottawa
Victoria
Montreal
0%
8.0%
Hotel
Vancouver
Winnipeg
Saskatoon
+50
bps
Focused Service
2%
8.5%
Seniors Housing
4%
Edmonton
Calgary
Halifax
Ottawa
Victoria
Montreal
Toronto
4%
London-Windsor
6%
Kitchener-Waterloo
6%
Quebec City
8%
4%
9.0%
Kitchener-Waterloo
Toronto
7.5%
Ottawa
7.0%
Montreal
6.5%
Quebec City
2018
Downtown Full Service
2019
2020
Suburban Limited-Service
2021
Focused Service
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
6.0%
CBRE RESEARCH
8%
6%
Historical Hotel Cap Rates
11
10%
0%
Multifamily
Suburban Limited Service
10%
2%
Retail
National Average
Downtown Full Service
Toronto
Executive Vice President,
CBRE Hotels
— The expectation gap between buyers and sellers continued to narrow somewhat
during the fourth quarter and appetite for hotel transactions is ramping up
heading into 2022.
r Q/Q
Cap Rate
Vancouver
Mark Sparrow
— Investors have begun to re-focus on investment in primary and secondary
markets as demand for transient and business travel continues to recover. There
also remains a belief that the long-term operating fundamentals in these markets
will be favourable.
Industrial
Regional Rankings
Vancouver
— Although still below stabilized levels, Canadian hotel investment activity began to
rebound in H2 2021 with a recovery in traditional sales. This trend is expected to
continue into 2022.
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
02
Regional
Investment
Trends
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Victoria Investment Trends
Investment
Debt Market
Office
— Demand for commercial real estate in Greater Victoria is forecasted
to strengthen in 2022 given strong optimism around underlying
fundamentals, abundant capital for investment, inexpensive debt, and
loosening of pandemic restrictions.
Ross Marshall
Senior Vice President
www.cbre.ca/ross.marshall
— The practice of repurposing buildings for alternate uses is likely to gain
momentum as the scarcity of development land persists. This trend
is motivating owner-occupiers and developers to consider creative
options for their properties.
— Ongoing concerns about rising tax obligations and policy changes
to address growing government debt levels could affect commercial
real estate owners going forward. Concerns are building for potential
changes to capital gains provisions and wealth taxes and this trend may
result in an increase of listings in the foreseeable future.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
High Rise A
5.5%
4.75% - 5.25%
tu
High Rise B
3.25% - 3.75%
tu
B
5.25% - 5.75%
tu
Low Rise A
3.50% - 4.00%
tu
Low Rise B
3.25% - 3.75%
tu
Suburban Office
Hotel
Victoria
Vancouver
Calgary
A
5.00% - 5.50%
tu
Seniors Housing
B
5.25% - 5.75%
tu
Independent/Assisted
Living A
5.25% -5.75%
6.50% - 7.25%
q
Winnipeg
6.50% - 7.00%
q
London-Windsor
A
4.25% - 4.75%
tu
Independent/Assisted
Living B
B
4.50% - 5.00%
tu
Long Term Care A
q
Edmonton
Saskatoon
Hotel
Retail
Toronto
5.00% - 5.50%
tu
Focused Service
7.50% - 8.50%
p
3.0%
Strip
5.00% - 5.50%
tu
Quebec City
Strip (non-anchored)
5.25% - 5.75%
tu
Halifax
Urban Streetfront
5.00% - 5.50%
tu
Cap Rate Summary
High Street
5.00% - 5.50%
tu
Glossary of Terms
2019
Office Downtown Class AA & A
Industrial Class A & B
2020
Retail Neighbourhood
Multifamily High Rise Class B
2021
Q4
Neighbourhood
Q3
3.5%
Q2
p
Q1
8.00% - 9.00%
Q4
Suburban Limited Service
Q3
tu
Q2
5.00% - 6.00%
Q1
Power
Q4
4.0%
Q3
p
Q2
6.00% -7.50%
Q1
Downtown Full Service
Q4
tu
Q3
4.75% - 5.75%
Q2
Regional
Q1
4.5%
2018
CBRE RESEARCH
Seniors Housing
Kitchener-Waterloo
5.0%
13
N/A
A
Industrial
Historical Victoria Cap Rates
Multifamily
Multifamily
Ottawa
Montreal
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Vancouver Investment Trends
Investment
Debt Market
Office
— Sustained demand for industrial space due to growing ecommerce
activity has resulted in Metro Vancouver having virtually zero leasing
availability. Vacancy continued to decline to record-low levels, despite
new deliveries totaling 1.2 million sq. ft. in Q4 2021. Continued demand
and lack of available space continues to drive rental rates upward.
Jim Szabo
Vice Chairman,
National Investment Team
www.cbre.ca/jim.szabo
— Vancouver’s office market saw vacancy rates decline for the first time
since the start of the pandemic in Q4 2021, with leasing activity up
significantly. The increase in leasing activity is expected to continue
into 2022 despite surges in Omicron cases, as companies realize the
importance of social and cultural development and meaningful inperson collaboration.
— Investor interest is up in almost every asset class, signaling a shift
towards recovery, with foreign investors returning to Canada.
Industrial
Q4 2021 Cap Rates
Retail
Downtown Office
rQ/Q
Multifamily
AA
3.50% 4.00%
tu
High Rise A
2.00% - 2.75%
q
A
3.75% - 4.25%
tu
High Rise B
2.50% - 3.00%
tu
B
4.00% - 4.50%
tu
Low Rise A
2.50% - 3.25%
q
Low Rise B
3.25% - 4.00%
q
Suburban Office
7.5%
Victoria
Vancouver
Calgary
4.75% - 5.25%
tu
Seniors Housing
B
5.25% - 5.75%
tu
Independent/Assisted
Living A
5.25% -5.75%
Independent/Assisted
Living B
6.25% - 6.75%
q
Winnipeg
Long Term Care A
6.50% - 7.00%
q
London-Windsor
A
3.25% - 4.00%
tu
B
3.50% - 4.00%
q
q
Edmonton
Saskatoon
Kitchener-Waterloo
Suburban Limited Service
6.50% - 8.00%
tu
3.5%
Neighbourhood
5.00% - 5.50%
tu
Focused Service
6.00% - 7.50%
tu
2.5%
Strip
4.50% - 5.00%
tu
Quebec City
Strip (non-anchored)
5.00% - 5.50%
tu
Halifax
Urban Streetfront
3.75% - 4.25%
tu
Cap Rate Summary
High Street
3.50% - 4.00%
tu
Glossary of Terms
Retail Neighbourhood
Multifamily High Rise Class B
2021
tu
2020
5.00% - 5.50%
2019
Power
2018
4.5%
2017
tu
2016
4.50% -6.50%
2015
Downtown Full Service
2014
tu
2013
4.00% - 4.50%
2012
Regional
2011
5.5%
2010
Retail
2009
CBRE RESEARCH
Hotel
6.5%
Office Downtown Class AA & A
Industrial Class A & B
14
Seniors Housing
A
Industrial
Historical Vancouver Cap Rates
Multifamily
Hotel
Toronto
Ottawa
Montreal
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Calgary Investment Trends
Investment
Debt Market
Office
— Record industrial absorption of 7.3 million sq. ft. in 2021 has compressed
vacancy rates to 3.3%. Continued strong leasing fundamentals and
new supply constraints are contributing to cap rate compression at
unprecedented levels.
Richie Bhamra
Senior Vice President,
National Investment Team
www.cbre.ca/richie.bhamra
— Investor demand for retail centres has continued to build from all purchaser
types. While increased demand has resulted in pre-pandemic pricing now
being achieved, many retailers continue to experience labour shortages
and physical occupancy constraints due to imposed restrictions.
— Many multifamily investors are circling for opportunities at this time.
Multifamily investment volumes have increased significantly with the most
active buyers being local groups.
— Calgary office assets are back on the radar of opportunistic investors. This
asset class is now attracting liquidity and there has been an increase in
activity from both yield and growth investors.
Historical Calgary Cap Rates
9.0%
Downtown Office
rQ/Q
Multifamily
Multifamily
AA
5.50% - 6.00%
tu
High Rise A
4.00% - 4.50%
tu
Seniors Housing
A
6.75% - 7.75%
tu
High Rise B
4.75% - 5.50%
tu
Hotel
B
8.50% - 9.50%
tu
Low Rise A
4.50% - 5.00%
tu
Low Rise B
4.75% - 5.25%
tu
Suburban Office
Victoria
Vancouver
Calgary
A
6.25% - 7.25%
tu
Seniors Housing
B
8.00% - 9.00%
tu
Independent/Assisted
Living A
6.00% -6.50%
7.00% - 7.75%
tu
Winnipeg
7.25% - 8.00%
tu
London-Windsor
Industrial
A
3.75% - 4.25%
q
Independent/Assisted
Living B
B
5.00% - 5.50%
q
Long Term Care A
tu
Edmonton
Saskatoon
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
3.0%
CBRE RESEARCH
Retail
Kitchener-Waterloo
8.0%
15
Industrial
Q4 2021 Cap Rates
Downtown Full Service
7.50% -8.50%
p
Suburban Limited Service
8.50% - 9.50%
p
Focused Service
8.00% - 9.00%
p
Toronto
Regional
5.00% - 6.00%
tu
Power
6.50% - 7.00%
q
Neighbourhood
6.00% - 7.00%
tu
Strip
5.25% - 5.75%
tu
Quebec City
Strip (non-anchored)
5.75% - 6.25%
tu
Halifax
Urban Streetfront
6.00% - 6.75%
tu
Cap Rate Summary
High Street
N/A
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Edmonton Investment Trends
Investment
Debt Market
Office
— The ongoing energy market recovery and yield compression in other
Canadian markets has led to surging demand for Edmonton industrial
assets. Several core properties traded in H2 2021 at aggressive pricing.
Dave Young
Executive Vice President,
National Investment Team
www.cbre.ca/dave.young
5.50% - 6.00%
tu
High Rise A
4.00% - 4.50%
tu
Seniors Housing
A
7.00% - 7.75%
tu
High Rise B
4.50% - 5.00%
tu
Hotel
B
8.00% - 11.00%
tu
Low Rise A
4.75% - 5.25%
q
Low Rise B
5.00% - 5.75%
q
— Uncertainty surrounding return-to-office plans remained the primary
challenge for the office sector in 2021. Select groups are looking for
office opportunities, however, the focus remains on the per square foot
value of offerings at this time.
Suburban Office
Victoria
Vancouver
Calgary
A
6.75% - 7.50%
tu
Seniors Housing
B
7.50% - 8.00%
tu
Independent/Assisted
Living A
6.00% -6.50%
7.00% - 7.75%
tu
Winnipeg
7.25% - 8.00%
tu
London-Windsor
Industrial
A
4.00% - 5.00%
q
Independent/Assisted
Living B
B
5.50% - 6.50%
q
Long Term Care A
tu
Edmonton
Saskatoon
Kitchener-Waterloo
8.0%
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
3.0%
CBRE RESEARCH
Multifamily
AA
9.0%
Multifamily
rQ/Q
Downtown Office
Historical Edmonton Cap Rates
16
Retail
— The multifamily sector continued to strengthen in Q4 2021 as economic
conditions improved and post-secondary students returned to classes.
— Impacted heavily by lockdowns and labour shortage, the retail sector
had a muted 2021. Demand has remained elevated for grocery and
pharmacy anchored assets, however, these properties continue to
be tightly held by owners. Liquidity is expected to return as COVID
uncertainty subsides going forward.
Industrial
Q4 2021 Cap Rates
Toronto
Regional
5.00% - 5.50%
tu
Downtown Full Service
7.50% -9.50%
p
Power
6.50% - 7.00%
tu
Suburban Limited Service
8.50% - 10.00%
p
Neighbourhood
6.50% - 7.00%
tu
Focused Service
8.00% - 9.50%
p
Strip
5.25% - 5.75%
tu
Quebec City
Strip (non-anchored)
6.00% - 6.50%
tu
Halifax
Urban Streetfront
6.25% - 6.75%
tu
Cap Rate Summary
High Street
N/A
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Saskatoon Investment Trends
Investment
Debt Market
Office
— With Nutrien taking occupancy of the North Tower at River Landing,
only three floors of space remain available at the development. The
onslaught of new office product continues to create uncertainty and
opportunity for investors and users in Saskatoon’s downtown core.
Michael Bratvold
Vice President,
Managing Director
www.cbre.ca/michael.bratvold
— Increasing construction costs continue to limit speculative industrial
construction as the market has continued to absorb vacant space.
Downward pressure on industrial cap rates is expected into 2022 as
availability is limited and demand remains strong.
— Saskatoon has seen significant investment demand for quality retail
investment properties. Strong demand for essential retail in densely
populated neighborhoods has placed downward pressure on cap rates
and continues to push values for high quality assets.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
High Rise A
7.5%
N/A
Seniors Housing
A
6.75% - 7.25%
tu
High Rise B
5.00% - 5.50%
tu
B
7.75% - 8.75%
tu
Low Rise A
5.25% - 5.75%
tu
Low Rise B
6.00% - 6.50%
tu
Suburban Office
6.75% - 7.25%
tu
Seniors Housing
B
7.50% - 8.00%
tu
Independent/Assisted
Living A
6.25% -6.75%
7.50% - 8.25%
A
6.00% - 6.50%
tu
Independent/Assisted
Living B
B
6.75% - 7.25%
tu
Long Term Care A
tu
Vancouver
Edmonton
tu
Winnipeg
London-Windsor
N/A
Kitchener-Waterloo
Hotel
6.5%
Retail
6.0%
Regional
5.75% - 6.25%
q
Downtown Full Service
7.50% -9.50%
tu
Power
6.00% - 6.25%
q
Suburban Limited Service
8.50% - 10.50%
tu
Neighbourhood
6.00% - 6.75%
q
Focused Service
8.00% - 10.00%
tu
Strip
5.75% - 6.25%
q
Quebec City
Strip (non-anchored)
7.00% - 7.25%
q
Halifax
Urban Streetfront
6.50% - 7.00%
q
Cap Rate Summary
5.5%
5.0%
4.5%
2018
2019
Office Downtown Class AA & A
Industrial Class A & B
2020
Retail Neighbourhood
Multifamily High Rise Class B
2021
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
4.0%
CBRE RESEARCH
Victoria
Saskatoon
7.0%
17
Hotel
Calgary
A
Industrial
Historical Saskatoon Cap Rates
Multifamily
Multifamily
High Street
N/A
Toronto
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Winnipeg Investment Trends
Investment
Debt Market
Office
— Winnipeg’s industrial market has remained exceptionally active both on
the investment and leasing fronts. Private investors have been targeting
the market as a higher yield option and the increased demand has
placed downward pressure on cap rates.
— A lack of industrial availability has encouraged developers to enter the
Winnipeg market and construction activity is rising.
Paul Kornelsen
Vice President
www.cbre.ca/paul.kornelsen
— Construction of the new fully pre-leased office tower at True North
Square has commenced. This marked the first Class A office
development in downtown Winnipeg since the first phase of the
development was launched in 2018. With the Downtown office vacancy
rate at a record high, the delivery of the tower could create further
disruptions in the market.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
High Rise A
9.0%
5.50% - 6.00%
tu
High Rise B
5.00% - 5.50%
tu
B
6.50% - 7.00%
tu
Low Rise A
5.25% - 5.75%
tu
Low Rise B
5.50% - 6.00%
tu
Suburban Office
6.50% - 7.00%
tu
Seniors Housing
B
7.00% - 7.50%
tu
Independent/Assisted
Living A
6.25% -6.75%
Independent/Assisted
Living B
7.50% - 8.25%
A
5.25% - 6.50%
q
B
6.50% - 7.25%
tu
Long Term Care A
Hotel
Victoria
Vancouver
Calgary
A
tu
Edmonton
Saskatoon
tu
Winnipeg
London-Windsor
N/A
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
3.0%
CBRE RESEARCH
Seniors Housing
Kitchener-Waterloo
8.0%
18
N/A
A
Industrial
Historical Winnipeg Cap Rates
Multifamily
Multifamily
Toronto
Regional
5.75% - 6.25%
tu
Downtown Full Service
7.50% -9.50%
p
Power
6.25% - 6.75%
tu
Suburban Limited Service
8.50% - 10.00%
tu
Neighbourhood
6.25% - 7.00%
q
Focused Service
8.00% - 9.00%
tu
Strip
5.75% - 6.25%
tu
Quebec City
Strip (non-anchored)
6.75% - 7.50%
tu
Halifax
Urban Streetfront
6.00% - 6.75%
tu
Cap Rate Summary
High Street
N/A
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
London-Windsor Investment Trends
Investment
Debt Market
Office
— The most aggressive purchasers in the London market have been
local and regional groups largely investing in smaller Class B product.
Investor demand drove cap rap rate compression across at least one
property type in each of the office, industrial, retail, and multifamily
sectors in Q4 2021.
Kevin MacDougall
Associate Vice President
www.cbre.ca/kevin.macdougall
— London has seen a recurring trend of local buyers partnering with
foreign investment sources to place capital of late.
— There is growing concern from owners of real estate assets in the
London region regarding the tax implications of growing government
debt.
— Sellers and buyers are being driven by geopolitical concerns given the
newest wave of COVID cases and continued market uncertainty.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
9.0%
tu
6.00% - 8.00%
q
High Rise B
4.00% - 5.25%
q
B
7.50% - 8.75%
q
Low Rise A
4.00% - 6.00%
q
Low Rise B
4.25% - 6.25%
q
Suburban Office
Seniors Housing
Hotel
Victoria
Vancouver
Calgary
A
6.50% - 7.50%
q
Seniors Housing
B
7.00% - 8.00%
q
Independent/Assisted
Living A
5.75% -6.25%
Independent/Assisted
Living B
6.75% - 7.50%
q
Winnipeg
Long Term Care A
6.75% - 7.25%
q
London-Windsor
A
4.75% - 5.75%
tu
B
5.75% - 6.50%
q
q
Edmonton
Saskatoon
Kitchener-Waterloo
Retail
7.0%
Regional
6.25% - 7.00%
tu
Downtown Full Service
7.50% -9.00%
tu
Power
6.25% - 7.00%
tu
Suburban Limited Service
8.50% - 9.50%
q
Neighbourhood
6.00% - 7.50%
tu
Focused Service
8.00% - 9.00%
q
Strip
5.25% - 6.50%
q
Quebec City
Strip (non-anchored)
5.50% - 7.25%
q
Halifax
Urban Streetfront
7.00% - 8.50%
tu
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
3.0%
CBRE RESEARCH
3.75% - 5.00%
8.0%
6.0%
19
High Rise A
A
Industrial
Historical London-Windsor Cap Rates
Multifamily
Multifamily
High Street
Hotel
N/A
Toronto
Ottawa
Montreal
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Kitchener-Waterloo Investment Trends
Investment
Debt Market
Office
— Investor confidence has continued to mount in the Kitchener-Waterloo region,
particularly for industrial and multifamily assets and select retail offerings.
— Demand for industrial assets has continued to push pricing into new territory.
This is being driven by a new wave of GTA and out of province capital which
has entered the market.
Joe Benninger
Vice President
www.cbre.ca/joe.benninger
— Available multifamily properties remain scarce, putting greater pressure on
investors to differentiate themselves in offer situations. Pricing has continued
to climb due to significant rental rate increases as buyers chase the upside in
contract versus market rents.
rQ/Q
Downtown Office
AA
N/A
Multifamily
Multifamily
High Rise A
3.50% - 4.25%
q
Seniors Housing
Hotel
A
5.75% - 6.50%
tu
High Rise B
3.75% - 4.50%
q
B
6.25% - 7.00%
tu
Low Rise A
2.75% - 3.50%
q
Low Rise B
3.00% - 4.00%
q
Victoria
Vancouver
Suburban Office
A
5.75% - 6.75%
tu
Seniors Housing
— Demand for development land remains elevated as supply remains
constrained, with increased interest from developers from the GTA and
western Canada being seen.
B
6.25% - 7.00%
tu
Independent/Assisted
Living A
5.75% -6.25%
6.75% - 7.50%
q
Winnipeg
6.75% - 7.25%
q
London-Windsor
Industrial
8.0%
A
4.25% - 5.25%
q
Independent/Assisted
Living B
B
5.00% - 5.75%
q
Long Term Care A
Calgary
q
Edmonton
Saskatoon
Kitchener-Waterloo
5.0%
Power
6.00% - 6.75%
tu
Suburban Limited Service
8.00% - 9.50%
tu
4.0%
Neighbourhood
5.50% - 6.50%
tu
Focused Service
7.50% - 9.00%
tu
3.0%
Strip
5.25% - 6.50%
tu
Quebec City
Strip (non-anchored)
4.75% - 6.25%
tu
Halifax
Urban Streetfront
5.75% - 7.00%
tu
Cap Rate Summary
Retail Neighbourhood
Multifamily High Rise Class B
2021
tu
2020
7.50% -8.50%
2019
Downtown Full Service
2018
tu
2017
5.25% - 6.00%
2016
Regional
2015
6.0%
2014
Retail
2013
7.0%
Office Downtown Class AA & A
Industrial Class A & B
CBRE RESEARCH
Retail
— Office leasing activity accelerated in Q4 2021 and investors are showing
increased willingness to consider new listings.
Historical Kitchener-Waterloo Cap Rates
20
Industrial
Q4 2021 Cap Rates
High Street
Hotel
N/A
Toronto
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Toronto Investment Trends
Investment
Debt Market
Office
— The fourth quarter saw continued capital rotation across the investment
landscape. Compressed cap rates in the industrial and multifamily
sectors have driven investors to expand their searches for yield to the
office and retail sectors and other alternative property types.
— Investment activity across the GTA was as robust as ever in Q4 2021
and the increased activity levels are spilling into the new year.
Peter Senst
President, Canadian
Capital Markets
National Investment Team
www.cbre.ca/peter.senst
— The land market in Toronto remains very attractive with investors
diversifying their portfolios to include non-income producing assets.
Despite increased land sales activity, construction cost increases are
putting significant pressure on pro-formas.
— Buyer pools for active listing are as deep as ever. High-net worth
individuals and mid-sized institutional firms have been eager to place
capital and have been very active of late.
Industrial
Q4 2021 Cap Rates
Retail
Downtown Office
rQ/Q
Multifamily
AA
4.00% - 4.50%
tu
High Rise A
2.65% - 3.75%
q
Seniors Housing
A
4.25% - 4.75%
tu
High Rise B
2.90% - 4.00%
q
Hotel
B
4.75% - 5.25%
tu
Low Rise A
2.75% - 3.75%
tu
Low Rise B
3.00% - 4.00%
tu
Suburban Office
9.0%
Calgary
5.50% - 6.25%
tu
Seniors Housing
B
6.25% - 7.00%
tu
Independent/Assisted
Living A
5.50% -6.00%
6.50% - 7.25%
q
Winnipeg
6.75% - 7.25%
q
London-Windsor
A
3.00% - 3.50%
q
Independent/Assisted
Living B
B
3.50% - 4.50%
q
Long Term Care A
q
Edmonton
Saskatoon
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
3.0%
CBRE RESEARCH
Vancouver
Kitchener-Waterloo
8.0%
21
Victoria
A
Industrial
Historical Toronto Cap Rates
Multifamily
Toronto
Regional
4.25% - 6.00%
tu
Downtown Full Service
4.50% -6.50%
tu
Power
6.00% - 7.25%
tu
Suburban Limited Service
7.50% - 8.50%
tu
Neighbourhood
5.00% - 6.25%
tu
Focused Service
7.00% - 8.00%
tu
Strip
4.50% - 5.75%
tu
Strip (non-anchored)
5.50% - 6.50%
q
Urban Streetfront
3.75% - 4.50%
tu
Cap Rate Summary
High Street
3.75% - 4.25%
tu
Glossary of Terms
Ottawa
Montreal
Quebec City
Halifax
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Ottawa Investment Trends
Investment
Debt Market
Office
— Investment activity finished 2021 on an extremely strong note, led
predominantly by the closing of the Place de Ville office complex.
— 2022 appears to be off to a healthy start, sparked by several key office,
industrial, and land closings spilling over from 2021. It’s expected
that investment activity will continue to accelerate in Q1 2022,
notwithstanding the return of provincial pandemic restrictions.
Nico Zentil
Senior Vice President,
National Investment Team
www.cbre.ca/nico.zentil
Industrial
Q4 2021 Cap Rates
— One of the most welcomed surprises in 2021 was the appetite for
quality, open-ended retail centres. Grocery and pharmacy anchored
assets in particular remained the most sought-after property types and
this trend is expected to continue into 2022.
— Optimism for the office sector has continued to build and several
downtown and suburban offerings are set to launch over H1 2022.
Retail
Downtown Office
rQ/Q
Multifamily
AA
4.75% - 5.25%
tu
High Rise A
3.50% - 4.00%
tu
Seniors Housing
A
5.00% - 5.50%
tu
High Rise B
4.00% - 4.75%
tu
Hotel
B
5.75% - 6.25%
tu
Low Rise A
3.50% - 4.00%
tu
Low Rise B
4.25% - 4.75%
tu
Suburban Office
9.0%
Calgary
6.25% - 6.75%
tu
Seniors Housing
B
7.00% - 7.50%
tu
Independent/Assisted
Living A
5.50% -6.00%
Independent/Assisted
Living B
6.50% - 7.25%
q
Winnipeg
Long Term Care A
6.75% - 7.25%
q
London-Windsor
A
4.50% - 5.00%
tu
B
5.25% - 5.75%
q
q
Edmonton
Saskatoon
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
3.0%
CBRE RESEARCH
Vancouver
Kitchener-Waterloo
8.0%
22
Victoria
A
Industrial
Historical Ottawa Cap Rates
Multifamily
Regional
5.00% - 5.75%
tu
Downtown Full Service
6.50% -8.00%
q
Power
6.00% - 6.75%
tu
Suburban Limited Service
8.00% - 9.00%
tu
Neighbourhood
5.75% - 6.50%
tu
Focused Service
7.50% - 8.50%
tu
Strip
5.50% - 6.25%
tu
Strip (non-anchored)
6.25% - 7.00%
q
Urban Streetfront
4.75% - 5.50%
tu
High Street
N/A
Toronto
Ottawa
Montreal
Quebec City
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Montreal Investment Trends
Investment
Debt Market
Office
— Essential anchored retail assets continue to garner robust interest from
private and institutional firms.
— The ongoing recovery of the office market has resulted in growing
optimism for the asset class. Several notable Downtown office
transactions closed in H2 2021 and it’s expected that investor
confidence will continue to mount going into 2022.
Scott Speirs
Executive Vice President,
National Investment Team
www.cbre.ca/scott.speirs
Industrial
Q4 2021 Cap Rates
Retail
Downtown Office
— Montreal has continued to see record levels of investor demand for
both multifamily and industrial assets. With fundamentals for these
asset classes showing no signs of weakening going into the new
year, these sectors are expected to continue to lead activity for the
foreseeable future.
— Industrial land and transit-oriented residential sites were highly sought
after by developers in 2021.
rQ/Q
Multifamily
AA
4.50% - 5.00%
tu
High Rise A
3.50% - 4.00%
tu
Seniors Housing
A
4.75% - 5.25%
tu
High Rise B
3.75% - 4.25%
tu
Hotel
B
5.00% - 5.50%
tu
Low Rise A
4.25% - 4.75%
tu
Low Rise B
4.75% - 5.25%
tu
Suburban Office
9.0%
Calgary
6.00% - 6.50%
tu
Seniors Housing
B
6.75% - 7.50%
tu
Independent/Assisted
Living A
5.75% -6.25%
6.75% - 7.75%
q
Winnipeg
7.50% - 8.00%
q
London-Windsor
A
3.50% - 4.00%
q
Independent/Assisted
Living B
B
4.00% - 5.00%
q
Long Term Care A
q
Edmonton
Saskatoon
Hotel
Retail
7.0%
6.0%
5.0%
4.0%
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
3.0%
CBRE RESEARCH
Vancouver
Kitchener-Waterloo
8.0%
23
Victoria
A
Industrial
Historical Montreal Cap Rates
Multifamily
Toronto
Regional
5.50% - 6.00%
tu
Downtown Full Service
6.00% -7.00%
q
Power
6.25% - 6.75%
tu
Suburban Limited Service
8.00% - 9.00%
q
Neighbourhood
6.25% - 6.75%
tu
Focused Service
7.00% - 8.25%
q
Strip
5.75% - 6.25%
tu
Quebec City
Strip (non-anchored)
7.00% - 7.75%
tu
Halifax
Urban Streetfront
4.00% - 4.50%
tu
Cap Rate Summary
High Street
N/A
Ottawa
Montreal
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Quebec City Investment Trends
Investment
Debt Market
Office
— The sale of Cominar REIT to a group led by Canderel will reshape a
large portion of the Quebec City real estate landscape. The portfolio
includes office, retail, and industrial assets in the Quebec City market
and this transaction was by far the largest of its kind in the city’s history.
It’s expected that the privatization of the portfolio will help accelerate
the potential redevelopment of many of the REIT’s assets.
Philippe Lambert
Senior Associate
www.cbre.ca/philippe.lambert
— Investment demand for land and industrials assets remains extremely
high. Limited supply is expected to place pressure on pricing going
forward.
— Retail and office occupancy have been resilient through the pandemic,
but uncertainty remains for these sectors given the newest wave of
COVID cases and the provincial lockdown measures enacted in Q4 2021
and early 2022.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
4.00% - 5.00%
tu
Seniors Housing
Hotel
6.00% - 7.00%
tu
High Rise B
5.00% - 6.00%
tu
B
7.00% - 8.25%
tu
Low Rise A
4.50% - 5.25%
tu
Low Rise B
5.00% - 6.00%
tu
Suburban Office
Victoria
Vancouver
Calgary
A
6.50% - 7.25%
tu
Seniors Housing
B
7.25% - 8.25%
tu
Independent/Assisted
Living A
6.00% -6.50%
7.00% - 8.00%
tu
Winnipeg
7.75% - 8.25%
tu
London-Windsor
Historical Quebec City Cap Rates
A
5.00% - 6.00%
tu
Independent/Assisted
Living B
9.0%
B
6.00% - 7.75%
tu
Long Term Care A
tu
Edmonton
Saskatoon
Kitchener-Waterloo
8.0%
Hotel
Retail
7.0%
Toronto
tu
Focused Service
8.00% - 9.00%
tu
4.0%
Strip
6.50% - 7.50%
tu
Quebec City
Strip (non-anchored)
7.75% - 8.25%
tu
Halifax
2019
Office Downtown Class AA & A
Industrial Class A & B
2020
Retail Neighbourhood
Multifamily High Rise Class B
2021
Q4
8.00% - 9.00%
Q3
Neighbourhood
Q2
5.0%
Q1
tu
Q4
8.50% - 9.50%
Q3
Suburban Limited Service
Q2
tu
Q1
7.25% - 8.00%
Q4
Power
Q3
6.0%
Q2
tu
Q1
7.50% -8.50%
Q4
Downtown Full Service
Q3
tu
Q2
6.50% - 7.25%
Q1
Regional
2018
CBRE RESEARCH
High Rise A
A
Industrial
24
Multifamily
Multifamily
Ottawa
Montreal
Urban Streetfront
N/A
Cap Rate Summary
High Street
N/A
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Halifax Investment Trends
Investment
Debt Market
Office
— The industrial sector saw the largest investment volumes of any asset
class in the Atlantic region in 2021. Activity was led by ProREIT’s
acquisition of a 15 asset, 1.1 million sq. ft. portfolio for $150.9 million from
KingSett in Q4 2021.
Bob Mussett
Executive Vice President,
National Investment Team
www.cbre.ca/bob.mussett
— Development land continues to be in high demand in Halifax. Full-year
investment volumes for this property type reached record heights in
2021.
— Halifax had a strong finish to the year in terms of investment activity
and the market is set for a busy Q1 2022. Multifamily, industrial, and
development land should continue to lead the way in terms of trading
volumes in the new year.
Industrial
Q4 2021 Cap Rates
Retail
rQ/Q
Downtown Office
AA
N/A
10.0%
9.0%
8.0%
tu
6.25% - 6.75%
tu
High Rise B
4.25% - 5.00%
q
B
7.00% - 7.50%
tu
Low Rise A
4.00% - 4.50%
q
Low Rise B
4.25% - 5.25%
q
Suburban Office
Seniors Housing
Hotel
Victoria
Vancouver
Calgary
A
6.50% - 7.50%
tu
Seniors Housing
B
7.50% - 8.00%
tu
Independent/Assisted
Living A
6.25% -7.00%
Independent/Assisted
Living B
7.50% - 8.50%
tu
Winnipeg
Long Term Care A
7.75% - 8.25%
tu
London-Windsor
A
5.00% - 5.50%
tu
B
5.50% - 6.75%
q
tu
Edmonton
Saskatoon
Hotel
Retail
Office Downtown Class AA & A
Industrial Class A & B
Retail Neighbourhood
Multifamily High Rise Class B
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
4.0%
3.0%
CBRE RESEARCH
4.00% - 4.50%
Kitchener-Waterloo
7.0%
6.0%
5.0%
25
High Rise A
A
Industrial
Historical Halifax Cap Rates
Multifamily
Multifamily
Regional
6.50% - 7.00%
tu
Downtown Full Service
7.00% -8.50%
tu
Power
6.50% - 7.25%
tu
Suburban Limited Service
8.00% - 9.50%
tu
Neighbourhood
7.00% - 8.00%
q
Focused Service
7.50% - 9.00%
tu
Strip
6.50% - 7.50%
tu
Strip (non-anchored)
7.00% - 8.00%
q
Urban Streetfront
6.50% - 7.50%
tu
High Street
N/A
Toronto
Ottawa
Montreal
Quebec City
Halifax
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021
Canadian
Cap Rates
rQ/Q
Q4 2021 Canadian Cap Rates & Investment Insights
Downtown office
AA
Victoria
N/A
Vancouver
Calgary
Edmonton
3.50% - 4.00% tu
5.50% - 6.00% tu
Saskatoon
5.50% - 6.00% tu
7.00% - 7.75%
N/A
A
4.75% - 5.25% tu
3.75% - 4.25% tu
6.75% - 7.75%
tu
6.75% - 7.25%
B
5.25% - 5.75%
tu
4.00% - 4.50% tu
8.50% - 9.50% tu
8.00% - 11.00% tu
7.75% - 8.75%
A
5.00% - 5.50% tu
4.75% - 5.25% tu
6.25% - 7.25%
tu
6.75% - 7.50% tu
6.75% - 7.25%
B
5.25% - 5.75%
5.25% - 5.75%
8.00% - 9.00% tu
tu
Winnipeg
London-windsor
N/A
Debt Market
N/A
tu
5.50% - 6.00% tu
6.00% - 8.00%
q
tu
6.50% - 7.00% tu
7.50% - 8.75%
q
tu
6.50% - 7.00% tu
6.50% - 7.50%
q
Retail
7.50% - 8.00% tu
7.50% - 8.00% tu
7.00% - 7.50% tu
7.00% - 8.00%
q
Multifamily
Suburban Office
tu
tu
Industrial
A
4.25% - 4.75% tu
3.25% - 4.00% tu
3.75% - 4.25%
q
4.00% - 5.00%
q
6.00% - 6.50% tu
5.25% - 6.50%
q
4.75% - 5.75%
tu
B
4.50% - 5.00% tu
3.50% - 4.00%
5.00% - 5.50%
q
5.50% - 6.50%
q
6.75% - 7.25%
tu
6.50% - 7.25%
tu
5.75% - 6.50%
q
Regional
4.75% - 5.75%
tu
4.00% - 4.50% tu
5.00% - 6.00% tu
5.00% - 5.50% tu
5.75% - 6.25%
q
5.75% - 6.25% tu
6.25% - 7.00% tu
Power
5.00% - 6.00% tu
5.00% - 5.50% tu
6.50% - 7.00%
6.50% - 7.00% tu
6.00% - 6.25%
q
6.25% - 6.75% tu
6.25% - 7.00% tu
Neighbourhood
5.00% - 5.50% tu
5.00% - 5.50% tu
6.00% - 7.00% tu
6.50% - 7.00% tu
6.00% - 6.75%
q
6.25% - 7.00%
6.00% - 7.50% tu
Strip
5.00% - 5.50% tu
4.50% - 5.00% tu
5.25% - 5.75%
5.25% - 5.75%
tu
5.75% - 6.25%
q
5.75% - 6.25% tu
5.25% - 6.50%
q
Non-anchored Strip Mall
5.25% - 5.75%
tu
5.00% - 5.50% tu
5.75% - 6.25% tu
6.00% - 6.50% tu
7.00% - 7.25%
q
6.75% - 7.50% tu
5.50% - 7.25%
q
Urban Streetfront
5.00% - 5.50% tu
3.75% - 4.25% tu
6.00% - 6.75% tu
6.25% - 6.75% tu
6.50% - 7.00%
q
6.00% - 6.75% tu
7.00% - 8.50% tu
High Street
5.00% - 5.50% tu
3.50% - 4.00% tu
q
q
tu
N/A
N/A
N/A
N/A
N/A
N/A
q
N/A
N/A
2.00% - 2.75%
4.00% - 4.50% tu
4.00% - 4.50% tu
2.50% - 3.00% tu
4.75% - 5.50% tu
4.50% - 5.00% tu
5.00% - 5.50% tu
5.00% - 5.50% tu
4.00% - 5.25%
q
5.25% - 5.75%
tu
4.00% - 6.00%
q
5.50% - 6.00% tu
4.25% - 6.25%
q
q
High Rise B
3.25% - 3.75%
Low Rise A
3.50% - 4.00% tu
2.50% - 3.25%
q
4.50% - 5.00% tu
4.75% - 5.25%
q
5.25% - 5.75%
Low Rise B
3.25% - 3.75%
3.25% - 4.00%
q
4.75% - 5.25% tu
5.00% - 5.75%
q
6.00% - 6.50% tu
tu
tu
tu
3.75% - 5.00% tu
Seniors Housing
Hotel
Vancouver
Calgary
Edmonton
Saskatoon
London-Windsor
Kitchener-Waterloo
Toronto
Ottawa
Seniors Housing
Independent/Assisted Living A
5.25% - 5.75%
q
5.25% - 5.75%
q
6.00% - 6.50% tu
6.00% - 6.50% tu
6.25% - 6.75% tu
6.25% - 6.75% tu
5.75% - 6.25%
q
Independent/Assisted Living B
6.50% - 7.25%
q
6.25% - 6.75%
q
7.00% - 7.75%
7.00% - 7.75%
7.50% - 8.25% tu
7.50% - 8.25% tu
6.75% - 7.50%
q
Long Term Care A
6.50% - 7.00%
q
6.50% - 7.00%
q
7.25% - 8.00% tu
6.75% - 7.25%
q
tu
tu
7.25% - 8.00% tu
N/A
N/A
Montreal
Quebec City
Halifax
Hotel
CBRE RESEARCH
Industrial
Winnipeg
Multifamily
26
Office
Victoria
Retail
High Rise A
Investment
Downtown Full Service
6.00% - 7.50%
p
4.50% - 6.50% tu
7.50% - 8.50%
p
7.50% - 9.50%
p
7.50% - 9.50% tu
7.50% - 9.50%
Suburban Limited Service
8.00% - 9.00%
p
6.50% - 8.00% tu
8.50% - 9.50%
p
8.50% - 10.00% p
8.50% - 10.50% tu
8.50% - 10.00% tu
8.50% - 9.50%
q
Focused Service
7.50% - 8.50%
p
6.00% - 7.50% tu
8.00% - 9.00%
p
8.00% - 9.50%
8.00% - 10.00% tu
8.00% - 9.00% tu
8.00% - 9.00%
q
p
p
7.50% - 9.00% tu
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021
Canadian
Cap Rates
rQ/Q
Q4 2021 Canadian Cap Rates & Investment Insights
Downtown office
AA
Kitchener-Waterloo
N/A
Montreal
Ottawa
4.00% - 4.50% tu
4.75% - 5.25%
tu
5.00% - 5.50% tu
4.75% - 5.25%
6.00% - 7.00% tu
6.25% - 6.75%
tu
tu
5.75% - 6.25%
tu
5.00% - 5.50% tu
7.00% - 8.25%
tu
7.00% - 7.50%
tu
tu
6.25% - 6.75%
tu
6.00% - 6.50% tu
6.50% - 7.25%
tu
6.50% - 7.50%
7.25% - 8.25%
tu
7.50% - 8.00% tu
tu
Quebec City
Investment
Toronto
4.50% - 5.00% tu
Halifax
N/A
Debt Market
N/A
A
5.75% - 6.50% tu
4.25% - 4.75%
B
6.25% - 7.00% tu
4.75% - 5.25%
A
5.75% - 6.75%
5.50% - 6.25%
B
6.25% - 7.00% tu
6.25% - 7.00% tu
7.00% - 7.50%
tu
6.75% - 7.50%
tu
A
4.25% - 5.25%
q
3.00% - 3.50%
q
4.50% - 5.00% tu
3.50% - 4.00%
q
5.00% - 6.00% tu
5.00% - 5.50% tu
B
5.00% - 5.75%
q
3.50% - 4.50%
q
5.25% - 5.75%
q
4.00% - 5.00%
q
6.00% - 7.75%
tu
5.50% - 6.75%
tu
6.50% - 7.00% tu
tu
Suburban Office
tu
tu
Industrial
q
Regional
5.25% - 6.00% tu
4.25% - 6.00% tu
5.00% - 5.75%
tu
5.50% - 6.00% tu
6.50% - 7.25%
Power
6.00% - 6.75%
tu
6.00% - 7.25%
tu
6.00% - 6.75%
tu
6.25% - 6.75%
tu
7.25% - 8.00% tu
6.50% - 7.25%
tu
Neighbourhood
5.50% - 6.50% tu
5.00% - 6.25%
tu
5.75% - 6.50% tu
6.25% - 6.75%
tu
8.00% - 9.00% tu
7.00% - 8.00%
q
Strip
5.25% - 6.50% tu
4.50% - 5.75%
tu
5.50% - 6.25%
tu
5.75% - 6.25%
tu
6.50% - 7.50%
tu
6.50% - 7.50%
tu
Non-anchored Strip Mall
4.75% - 6.25%
5.50% - 6.50%
q
6.25% - 7.00%
q
7.00% - 7.75%
tu
7.75% - 8.25%
tu
7.00% - 8.00%
q
Urban Streetfront
5.75% - 7.00% tu
6.50% - 7.50%
tu
tu
N/A
3.75% - 4.50% tu
3.75% - 4.25%
tu
4.75% - 5.50% tu
N/A
4.00% - 4.50% tu
N/A
N/A
N/A
N/A
High Rise A
3.50% - 4.25%
q
2.65% - 3.75%
q
3.50% - 4.00% tu
3.50% - 4.00% tu
4.00% - 5.00% tu
4.00% - 4.50% tu
High Rise B
3.75% - 4.50%
q
2.90% - 4.00%
q
4.00% - 4.75%
tu
3.75% - 4.25%
tu
5.00% - 6.00% tu
4.25% - 5.00%
q
Low Rise A
2.75% - 3.50%
q
2.75% - 3.75%
tu
3.50% - 4.00% tu
4.25% - 4.75%
tu
4.50% - 5.25%
tu
4.00% - 4.50%
q
Low Rise B
3.00% - 4.00%
q
3.00% - 4.00% tu
4.25% - 4.75%
4.75% - 5.25%
tu
5.00% - 6.00% tu
4.25% - 5.25%
q
tu
Multifamily
Seniors Housing
Hotel
Vancouver
Calgary
Edmonton
Saskatoon
London-Windsor
Kitchener-Waterloo
Toronto
Ottawa
Seniors Housing
Independent/Assisted Living A
5.75% - 6.25%
q
5.50% - 6.00%
q
5.50% - 6.00%
q
5.75% - 6.25%
q
6.00% - 6.50% tu
6.25% - 7.00% tu
Independent/Assisted Living B
6.75% - 7.50%
q
6.50% - 7.25%
q
6.50% - 7.25%
q
6.75% - 7.75%
q
7.00% - 8.00% tu
7.50% - 8.50% tu
Long Term Care A
6.75% - 7.25%
q
6.75% - 7.25%
q
6.75% - 7.25%
q
7.50% - 8.00%
q
7.75% - 8.25%
7.75% - 8.25%
tu
tu
Montreal
Quebec City
Halifax
Hotel
CBRE RESEARCH
Retail
Winnipeg
Multifamily
27
Industrial
Victoria
Retail
High Street
Office
Downtown Full Service
7.50% - 8.50% tu
4.50% - 6.50% tu
6.50% - 8.00%
q
7.50% - 8.50% tu
7.00% - 8.50% tu
Suburban Limited Service
8.00% - 9.50% tu
7.50% - 8.50% tu
8.00% - 9.00% tu
8.00% - 9.00%
q
8.50% - 9.50% tu
8.00% - 9.50% tu
Focused Service
7.50% - 9.00% tu
7.00% - 8.00% tu
7.50% - 8.50% tu
7.00% - 8.25%
q
8.00% - 9.00% tu
7.50% - 9.00% tu
q
6.00% - 7.00%
Cap Rate Summary
Glossary of Terms
©2021 CBRE LIMITED
Intelligent Investment
Q4 2021 Canadian Cap Rates & Investment Insights
Glossary of Terms
Cap Rate: Estimates are provided by NIT members in respective
markets based on market transactions and/or feedback from
investors on their current yield expectations.
Office/Industrial
Downtown: The neighborhoods in a metropolitan area which are
the most densely populated, contain the highest concentration of
businesses, offer access to a variety of urban amenities, and are
typically well serviced by public transit.
Suburban: The portion of a metropolitan area that is outside the
city centre with a less concentrated population and typically lower
density land use than is typically found in the metro’s urban areas.
Class AA (Office Only): The best quality office assets in a
metropolitan area’s downtown submarket. Typically, these
properties are newer, larger than 800,000 sq. ft. with large floor
plates, fully or near fully leased at or above markets rents to top
quality tenants.
Class A: Properties competing for higher-quality tenants with
above average rental rates for the area. Buildings are in good
physical shape, are well situated and contain high-quality finishes,
top class building systems and exceptional accessibility features.
Class B: Properties competing for a wide range of tenants with
average or below average rents for the area. Buildings are in good
to fair shape and suitable for tenants seeking functional space at
discounted rates.
Retail
Multifamily
Hotel
Regional: Enclosed malls which have strong anchors with a high
percentage of National tenants in CRU space. Occupiers focus on
general merchandise or fashion-oriented offerings. Properties are
typically anchored by at least two large format tenants, including
most often a department store.
High Rise: Multi-unit high density properties typically 5 storeys and
above in height.
Cap Rates (Hotel Specific): Rates indicated are based on adjusted
results after deduction of management fees and reserves for
replacement
Power Centres: Unenclosed retail centres comprised of
freestanding and mostly unconnected single storey properties or
“big boxes”, often including at least one large format brand name
anchor tenant. Typically situated in a larger retail node but contain
limited CRU space.
Class A: Newer properties which are situated in desirable
neighbourhoods, well-serviced by public transit, demand above
average rents, and are furbished with top of the line finishes and
amenities.
Community/Neighbourhood: Enclosed or unenclosed shopping
centres that serve a community and are generally anchored by
some combination of a junior department store, supermarket, drug
or sport store. Typically supply a wide range of apparel and soft
goods.
Strip (Anchored): Open-air centres anchored by either a grocery
or major drugstore tenant. Designed to provide convenience
shopping for the daily needs of consumers in the surrounding
neighbourhood. Off-street parking typically offered on site.
Strip (Non-Anchored): Open-air centre typically not anchored by
either a grocery or drugstore tenant. Centres offer a narrow mix
of goods and personal services to a limited trade area. Off-street
parking typically offered on site.
High Street Retail: Self-contained streetfront properties centrally
located along high-profile retail corridors. Properties are occupied
by well-known brands at well above average rental rates. Parking is
typically available on street or within a public parking structure.
Urban Streetfront: Streetfront properties located side by side
along major urban thoroughfares in close proximity to public
transit. Properties may be occupied by a wide range of tenants at
above average rental rates. Parking is typically available on street
or within a public parking structure.
28
CBRE RESEARCH
Low Rise: Multi-unit properties typically 4 storeys and below in
height.
Class B: Older properties which offer functional space with rental
rates near to or below the market average.
Seniors Housing
Ind./Assist. Living: Multifamily rental properties with central dining
facilities and other amenity spaces that provide residents with
meals and other services such as housekeeping, transportation, and
social and recreational activities to seniors 75+ years of age. Many
have trained staff providing assistance with activities of daily living
(“ADL”), either throughout the building or on a separate floor/wing.
There are no funded Long Term Care (nursing) beds.
Long Term Care: Provincially licensed, government funded Long
Term Care homes providing health and medical services and
accommodation to residents who require 24-hour nursing care and
supervision within a secure setting.
Full Service: Hotel properties offering an abundant provision of
food and beverage services (meeting rooms and dining venues).
Full service hotels also typically offer additional amenities such as
room service, valet parking and concierge service. Examples of core
brands would be Marriott, Hilton, Four Seasons.
Limited Service: Hotel properties that are rooms focused and
don’t offer a wide variety of additional amenities or services. This
category would include “budget” limited service assets that offer
no-frills rooms at modest prices, as well as more robust limited
service properties that might offer a fitness room, a guest laundry
facility, a market pantry, an indoor and/or outdoor pool, and/or a
small meeting room. Examples would include Comfort Inn, Days Inn,
Super 8.
Focused Service: Focused service hotels (also referred to as
select service hotels) offer the fundamentals of limited-service
properties together with a selection of the services and amenities
characteristic of full-service properties. They may offer food and
beverage facilities but on a less elaborate scale than one would find
at full-service hotels. Extended Stay/All-Suite hotels are included
in this sample. Examples would include Hampton Inn, Holiday Inn
Express, Residence Inn.
Class A: Properties with 120+ units, within 15 years of age and in
good to fair shape. Typically situated in primary or large secondary
markets, with a good suite mix, amenity space and other desirable
features.
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