Multifamily buildings had some of the lowest cap rates in Canada in the first quarter of 2023. For class A multifamily high rise buildings, investors could expect a capitalization rate of 4.04 percent, while for class AA downtown offices, the cap rate was 5.92 percent. The capitalization rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset.
Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type
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CBRE Group. (April 25, 2023). Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type [Graph]. In Statista. Retrieved December 22, 2024, from https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/
CBRE Group. "Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type." Chart. April 25, 2023. Statista. Accessed December 22, 2024. https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/
CBRE Group. (2023). Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type. Statista. Statista Inc.. Accessed: December 22, 2024. https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/
CBRE Group. "Capitalization Rates of Commercial Property in Canada in 1st Quarter 2023, by Property Type." Statista, Statista Inc., 25 Apr 2023, https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/
CBRE Group, Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type Statista, https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/ (last visited December 22, 2024)
Capitalization rates of commercial property in Canada in 1st quarter 2023, by property type [Graph], CBRE Group, April 25, 2023. [Online]. Available: https://www.statista.com/statistics/187649/prospected-capitalization-rates-for-canadian-real-estate-by-property-type/