CAPITALIZATION RATE REPORT - Canadian commercial …€¦ · CAPITALIZATION RATE REPORT Q1 2015....

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Valuation & Advisory Services Canada

CAPITALIZATION RATE REPORT

Q1 2015

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ALBERTA REAL ESTATE MARKET FALLS WITH THE PRICE OF OIL

COLLIERS INTERNATIONAL | P. 1

The Canadian economy is sensitive to the price of oil, which is most strongly felt in Alberta. The last five years has witnessed relatively high oil prices, broadly in the $90 to $110 per barrel range, which has resulted in growth in income levels, population and employment across the province. Calgary, the largest city in Alberta, currently has the highest median household income in Canada (Statistics Canada, 2014), and its population grew by 16 percent to 1.2 million over the previous five years. Similarly, growth in energy, manufacturing and retail employment kept the unemployment rate below the national average. In conjunction with this growth, the Calgary and Edmonton real estate markets have flourished. Due to recent and substantial decreases in oil prices, Alberta’s real estate markets are likely to be adversely affected. Most notably in the short term are the office markets in both major cities and the industrial market in Edmonton.

The downtown Calgary office market has already witnessed an increase in vacancy to 11.00% as of Q1 15, up both from 8.52% in the previous quarter and 8.13% the year prior. Over the last five years Calgary’s downtown office market has grown as a result of high tenant demand, spurring low vacancy rates. Resulting from this previous position, Calgary has added 6,300,000 SF of office space to the market since 2009, with just shy of an additional 4,000,000 SF currently under construction.

The current state of the energy sector has resulted in numerous industry players deciding to cut their capital expenditure budgets for 2015, and in some cases reduce or suspend their dividend payouts in the near term. As major projects are cancelled or placed on hold, a number of companies have laid off staff. This has the potential to result in a domino effect of workforce reductions for all supporting industries. One form that this rationalization of expenditure has taken has been the downsizing of office space requirements by companies, and putting surplus space back onto the market as either direct or sublease space. In Calgary, sublease availability increased by approximately 350,000 square feet over the fourth quarter of 2014, a trend which is anticipated to continue in 2015. Coupled with additions to supply, overall vacancy in downtown office is projected to increase to 15.9% by 2018.


Although the direct impact of the declines in oil pricing are not as apparent to national real estate trends as they may be in Alberta, Canadian companies are taking a cautious approach due to the projected decrease in national revenues from Alberta. Canadian oil producers will be hardest hit, losing an estimated $40 billion U.S. in revenues this year, taking a toll on business investment and corporate profits (Conference Board of Canada).

CONTACT INFORMATION

Chris Marlyn Senior Vice President Valuation & Advisory Services, Canada tel: +1 403 298 0439 email: [email protected]

Adam Kosoy Senior Managing Director Capital Markets & Investment Services, Canada tel: +1 416 607 4348 email: [email protected]

Craig Hennigar Market Intelligence Director Colliers International | Canada tel: +1 604 505 1710 email: [email protected]

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The impact will be particularly severe in Alberta and Newfoundland and Labrador and to a lesser degree Saskatchewan. One benefit of the current market conditions will be felt by Canada’s trade sector, centered largely in Ontario and Quebec. This sector will benefit from the combination of a stronger U.S. economy and weaker Canadian dollar.



Q1 2015 CAP RATES

DEMETRI ANDROSManaging Director, Toronto+1 416 643 [email protected]

Toronto is a global destination for real estate investment, with an abundance of available institutional and foreign capital pursuing limited investment grade product. Most recently, transactions are moving towards private, off-market deals such as Greenland, an Asian investor; who recently purchased a significant redevelopment site at the southeast corner of King Street and Peter Street from Easton’s Group of Hotels and the Remington Group. A number of sovereign wealth funds have demonstrated interest in the Toronto market, however, they have struggled to find suitable investments. Also the low Canadian dollar is spurring growth in the manufacturing sector with respect to Canadian exports. Consequently, the industrial market has witnessed positive growth, reflected by upward pressure on rental rates for newer, functional Class A industrial product, as well as new development. New developments are taking place in markets such as Milton; where companies like Hopewell, Prologis, HOOPP and Sun Life are undertaking large development projects. CN has also proposed a 400 acre rail distribution centre, which would transform Milton into a significant transportation hub, although this would be a longer term play. PIRET has also made an impressive acquisition with a the new construction of a 420,000 square foot, FedEx Hub facility in Vaughan, slated for completion in May 2016.

Overall, it is anticipated that while the market will remain active, it will likely be less robust than in 2014. The historically low interest rate environment will result in an abundance of refinancing opportunities and new debt on acquisitions. The notable additional supply of new office space coming on stream south of financial core, will likely result in an increase in vacancy rates on existing inventory, particularly Class B and C building in the financial core. This will be the result of tenants pursuing options in higher quality, more functional, premises.

What's Trending

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DOWNTOWN OFFICE

A B TREND

LOW HIGH LOW HIGH A B

4.75% 5.75% 5.75% 6.50%

SUBURBAN OFFICE

A B TREND


6.00% 7.25% 7.00% 7.75%

INDUSTRIAL

SINGLE-TENANT A MULTI-TENANT B TREND


5.25% 5.75% 6.25% 7.25%


TORONTO

RETAIL

REGIONAL / POWER COMMUNITY STRIP MALL TREND

LOW HIGH LOW HIGH LOW HIGH R C S

4.75% 5.75% 6.00% 6.75% 5.50% 6.25% p p

MULTI-FAMILY

HIGH-RISE LOW-RISE TREND

LOW HIGH LOW HIGH H L

3.75% 5.00% 3.50% 5.00% q

HOTEL

URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND

LOW HIGH LOW HIGH LOW HIGH U S L

6.25% 7.50% 7.50% 8.50% 9.00% 11.00%

http://www.collierscanada.com/en/People/Demetri-Andros


What's TrendingMarket conditions in Montreal remained stable in the first quarter of 2015. Similar stability can be seen in the capitalization rates for the office, retail, industrial and multi-family assets classes. There continues to be a number of large-scale development projects in Montreal. These projects are primarily high rise condominiums; however, there are two office projects: Manulife Building (Ivanhoe Cambridge) and Extension Desjardin (Rester Management). Both of these office developments are located on de Maisonneuve Street West in downtown Montreal.

The end of 2014 and beginning of 2015 witnessed two key transactions in the Montreal area. Ivanhoe Cambridge sold a 15 property portfolio comprising 5,664,000 SF in October 2015. The portfolio was purchased by Cominar REIT for $1,527,000,000, or $270 per SF.

RioCan Real Estate Investment Trust sold a portfolio to Desjardins Asset Management. This transaction included five community and neighborhood shopping centres in Montreal and Québec City which traded for $103,400,000 ($133 per SF).

These two transactions are a clear demonstration that the Québec market remains active. 2015 is forecasted to remain stable.

MICHEL COLGANManaging Director, Montreal+1 514 764 [email protected] HERE to view profileQ1 2015 CAP RATES

DOWNTOWN OFFICE

A B TREND


6.75% 6.50% 6.00% 6.50%

SUBURBAN OFFICE

A B TREND


6.75% 7.75% 7.25% 8.25%

INDUSTRIAL



6.75% 7.50% 7.00% 7.75%


RETAIL



5.75% 6.75% 6.90% 7.75% 7.00% 7.75%

MULTI-FAMILY



5.00% 6.00% 6.00% 6.75%

HOTEL



7.25% 9.00% 8.50% 9.75% 9.75% 11.50%

MONTREAL

http://www.collierscanada.com/en/People/Michel-Colgan


What's TrendingThe drop in Energy prices in Alberta is having a wide sweeping effect which is only beginning to be realized. A good portion of the increase in unemployment will be felt in Calgary, which will in turn create an increase in the amount of available office space. The absorption of vacant office space had already begun to slow at the end of 2014 and is forecast to decrease further in 2015.

Sale activity has been extremely limited in Calgary’s investment market through the first three months of 2015. This is particularly pronounced in the office market, which as described previously, is expected to experience increased vacancy and declining rental rates. Decreased absorption, paired with the increase of office inventory coming on stream in the next few years, will lead to increased vacancy rates, which typically leads to more competitive rental rates. This may create a situation of declining cash flows for a period of time in some office buildings which had previously experienced top of market rental rates and increasing cash flows for many years. It is expected that capitalization rates on office product will at best stabilize, and is more likely increase over the next year. This will certainly be true for B and C class quality buildings while A Class assets will continue to be attractive.

The industrial, retail and multi-family asset classes are expected to continue to perform strongly throughout 2015. Rental rates and overall demand for these asset classes are expected to remain stable; particularly for good quality, well located properties. Capitalization rates for these assets are forecast to remain stable throughout 2015, which is considered to be positive based on how low they have been for the past year. The volume of owner-user properties in the industrial market is expected to remain strong, with the decrease in overall volume expected to be shown in investment-grade properties.

Q1 2015 CAP RATESCALGARYDOWNTOWN OFFICE

A B TREND


5.50% 6.25% 6.50% 7.00% p

SUBURBAN OFFICE

A B TREND


5.75% 6.50% 6.75% 7.25% p

INDUSTRIAL



5.75% 6.25% 6.00% 6.75%


RETAIL



5.25% 6.00% 5.50% 6.25% 6.00% 6.75%

MULTI-FAMILY



4.25% 4.75% 4.50% 5.25%

HOTEL



7.00% 8.50% 8.00% 9.25% 8.50% 10.00% p p p

LAUREL EDWARDManaging Director, Calgary+1 403 298 [email protected] HERE to view profile

http://www.collierscanada.com/en/People/Laurel-Edwards


What's TrendingMetro Vancouver has long been an attractive real estate investment market: limited supply, geographical constraints, provincially protected farmland, and costly municipal development changes have created an environment with many barriers to entry which has in turn resulted driving rental rates and real estate returns to levels not experienced elsewhere in Canada. Substantial demand from a wide variety of investors; including local, national, US (given the lower Canadian dollar), and in particular from mainland China, has combined to drive returns / yields to record lows, seemingly year after year. As every new transaction closes the market continues to be surprised as capitalization rates continue to compress.

One exception to this trend may be the investment market for downtown office product. Additional new supply, totaling 2 million square feet by 2017, may negatively impact the supply / demand relationship between landlords and tenants to the extent that rental rates will decrease which would have the corresponding result of negatively impacting required returns or yields within this segment.

While the sudden departure of Target from the Canadian retail landscape was surprising, this has created opportunities for many landlords to regain control of these premises and re-purpose or re-lease them at rental rates that are more reflective of market levels. Conversely, a short time after the after the Target announcement, a prospective purchaser abandoned a sizeable deposit relating to an unconditional offer to purchase a second tier community mall in Metro Vancouver. Reportedly priced at over $50 million, this asset had a large portion of its space leased to Target. Previously, the closing of such a transaction would have been a foregone conclusion; the news relating to Target was an obstacle to concluding sale.

Q1 2015 CAP RATESVANCOUVERDOWNTOWN OFFICE

A B TREND


4.25% 5.00% 4.50% 5.75%

SUBURBAN OFFICE

A B TREND


5.50% 6.25% 6.00% 6.75%

INDUSTRIAL



4.75% 5.50% 5.25% 6.00%


RETAIL



4.75% 5.50% 4.75% 5.75% 4.75% 5.75%

MULTI-FAMILY



3.00% 3.25% 3.25% 4.25% q q

HOTEL



6.00% 7.00% 7.25% 8.50% 7.25% 8.50%

JAMES GLENVice President, Vancouver+1 604 661 [email protected] HERE to view profile

http://www.collierscanada.com/en/People/James-Glen


What's TrendingThe impact of a drop in energy prices is now materializing as Alberta’s unemployment rate increase from 4.5 percent in January 2015 to 5.3 percent as of February, 2015. More specifically, Edmonton experienced a minor increase to 4.9 percent in February 2015, up from 4.8 percent recorded in the same month of the prior year. After leading the way in 2014, Edmonton is forecast to take a step back as lower economic growth of 1.5 percent is forecast for the city in 2015. While this is largely due to the lower oil prices and slower growth in the primary sectors, strong activity in the non-residential construction sector will continue to trend upward through 2015.

Edmonton’s investment market has been quiet through the first three months of 2015. While owner-user properties are still transacting, investment grade properties across all asset classes remain on the sidelines. Multi-family properties remain the most active asset class, demonstrating their consistency and overall strength in Edmonton. With an influx of inventory expected to be introduced into Edmonton’s industrial market, users will finally be presented with some options across differing sectors of the city which should stimulate sale volumes.

Retail vacancy in Edmonton still remains under 2.0 percent, with any fluctuations stemming from major store closings led by Target, Mexx, Jacob and Future Shop. Retail strip centres continue to be highly sought-after properties as rental rates remain high and access to disposable income remains strong. These market conditions have interested a number of new retailers to consider Edmonton.

Despite the historically low correlation between oil prices and Edmonton office market absorption, this indirect influence will still manifest itself through the reduction in demand for the products and services these energy related industries provide. Coupled with the large scale increase of office inventory being introduced in 2016, and weaker tenant demand, office absorption is projected to decrease and the vacancy rate is forecast to increase throughout 2015 and 2016.

Q1 2015 CAP RATESEDMONTONDOWNTOWN OFFICE

A B TREND


5.75% 6.75% 6.25% 7.50% p p

SUBURBAN OFFICE

A B TREND


6.50% 7.25% 7.00% 7.75% p p

INDUSTRIAL



5.75% 6.50% 6.00% 7.00%


RETAIL



5.50% 6.00% 5.75% 6.50% 5.75% 6.25%

MULTI-FAMILY



5.00% 5.50% 5.50% 6.50% p

HOTEL



7.75% 9.50% 8.75% 9.50% 8.75% 9.50% p p p

ANDREW MACLEODManaging Director, Edmonton+1 780 969 [email protected] HERE to view profile

http://www.collierscanada.com/en/People/Andrew-MacLeod


What's TrendingThe first quarter of 2015 has witnessed capitalization rates in Ottawa continuing to hold steady in all assets classes. This trend demonstrates to potential investors that Ottawa is a stable choice. The office market continues to remain the wildcard for capitalization rates moving into 2015, which is a direct result of high vacancy currently found throughout the city. This will inevitably result in capitalization rate increases for Class B and C quality office assets throughout Ottawa, Class A office assets in Ottawa continue to be heavily sought after, and it is not anticipated that there will be any increase in capitalization rates for these assets.

Aside from the office market, the industrial, retail and multi-family asset classes continue to perform strongly. There continues to be high demand for good quality, well located assets of all of these asset classes. Limited supply of asset with these characteristics, particularly for the industrial asset class, in conjunction with high demand has impacted the capitalization rates found within Ottawa, which remain low.

Continuing through 2015, the office market will remain the wildcard, especially as Ottawa continues to struggle with high vacancy. Limited supply of industrial land will continue to drive down capitalization rates found for the asset class. The results of the upcoming Federal Government election will also have a meaningful impact on the performance of the Ottawa market.

OLIVER TIGHEManaging Director, Ottawa+1 613 683 [email protected] HERE to view profileQ1 2015 CAP RATES

OTTAWADOWNTOWN OFFICE

A B TREND


6.00% 6.25% 6.75% 7.25% p

SUBURBAN OFFICE

A B TREND


6.50% 7.00% 7.50% 8.00% p p

INDUSTRIAL



6.00% 6.50% 6.00% 6.50%


RETAIL



5.00% 5.50% 6.00% 6.50% 6.25% 6.75%

MULTI-FAMILY



4.50% 5.00% 5.00% 5.50%

HOTEL



6.50% 8.00% 8.50% 9.50% 9.25% 11.25%

http://www.collierscanada.com/en/People/Oliver-Tighe


What's TrendingWinnipeg is coming off a record year of commercial sales in 2014. Investment sales for properties in excess of $1 million dollars topped $969 million, the highest level since 2007. This is due in a large part to the sale of the premier office building at Portage and Main and the sale of three regional malls. The retail and office asset classes lead the way with $354 and $287 million respectively. Regarded as a conservative and stable market, Winnipeg has gained a new appreciation with national purchasers. This has caused continued capitalization rate compression over the past several years.

Downtown development continues with the $180 million dollar Convention Centre addition, Centrepoint across from the MTS arena and the high rise apartment block at Assinboine Landing. Other prospective developments include three high-rise multi-use projects all in the downtown core, including a proposed hotel across from the Convention Centre.

Retail power centre vacancy currently sits at 1.82% and Regional mall vacancy at 1.65% at year-end 2014. These vacancy rates could be substantially affected in 2015, with the closing of a number of major retailers such as Target and Future Shop. Target will vacate approximately 500,000 square feet of space in Winnipeg. In addition, continued development in Linden Ridge and Seasons of Tuxedo will add additional inventory.

Winnipeg is witnessing a high demand for land. In particular, a continued shortage of industrial serviced land have witnessed prices substantially increasing and more development has taken place in the surrounding municipalities. Multi-family land has more than doubled in price over the past several years.

Looking forward in 2015, investment sales are not expected to reach 2014 levels unless some substantial assets are traded. Work has commenced in the Bishop Grandin Crossing area and further work is expected in 2015; this will add 100+ acres of multi-family, and mixed-use land. This project will be adjacent a bus rapid transit station.

DARRYL PRATTDirector, Winnipeg+1 204 943 [email protected] HERE to view profileQ1 2015 CAP RATES

WINNIPEGDOWNTOWN OFFICE

A B TREND


5.50% 6.25% 6.25% 7.25%

SUBURBAN OFFICE

A B TREND


N/A N/A 6.50% 7.25%

INDUSTRIAL



6.00% 7.00% 6.25% 7.25%


RETAIL



5.50% 6.25% 6.00% 6.75% 6.00% 7.00%

MULTI-FAMILY



4.75% 5.75% 5.00% 6.00%

HOTEL



7.75% 8.75% 8.75% 10.50% 10.00% 11.75% p p

http://www.collierscanada.com/en/People/Darryl-Pratt


What's TrendingThe Halifax office market is expected to fluctuate and eventually stabilize throughout 2015. Office vacancy rates are expected to continue to rise as a substantial amount of new supply in the downtown reaches completion. The increase in new office space will likely be met with a slight decrease in demand, partially due to the recurring trend of movement toward the suburbs. As the downtown undergoes a transformative growth phase the resulting new supply will be high-quality space, designed to curb some of the movement to the suburbs and help to invigorate the downtown office sector over the mid- to long-term.

In January 2015 Irving Shipbuilding announced the signing of the $3.5 billion Arctic Offshore Patrol Ships (AOPS) contract, $2.3 billion going toward Irving for the patrol vessels and the remaining $1.2 billion will be spent on infrastructure. The $340-million modernization of the Irving Shipyard is nearing completion for test modules is to begin in June 2015 and full construction to begin in September. The industrial vacancy rate in Halifax is improving and landlords have begun increasing asking rental rates in anticipation of increased demand resulting from ship building contracts.

Similar to the office market, the multi-family market will continue to see significant new supply as several new projects were recently completed or are in various stages of development throughout the city. There are some concerns about the saturation of the market outside of the peninsula while new supply of modern units in the downtown has been long overdue. It is anticipated that rental rates in the downtown will be on the rise throughout 2015 to support high development costs.

MITCH WILEManaging Director, Halifax+1 902 442 [email protected] HERE to view profileQ1 2015 CAP RATES

HALIFAXDOWNTOWN OFFICE

A B TREND


6.25% 7.00% 7.00% 7.25%

SUBURBAN OFFICE

A B TREND


6.50% 7.00% 7.00% 7.75%

INDUSTRIAL



6.50% 7.00% 7.25% 7.75%


RETAIL



5.25% 6.25% 6.50% 7.50% 6.25% 7.50%

MULTI-FAMILY



4.90% 5.25% 5.25% 6.50%

HOTEL



7.50% 8.50% 9.00% 10.00% 9.50% 11.00%

http://www.collierscanada.com/en/People/Mitch-Wile


What's TrendingThe Greater Victoria investment market has experienced a general compression in overall capitalization rates. This is partly due to rising demand for well-located and maintained product in the face of all-time low interest rates and an availability of financing opportunities. Competition for quality investment properties across all major markets continues to grow across Vancouver Island, including emerging and established secondary markets. There has also been an increase in demand from Lower Mainland-based buyers looking to invest capital in the south and mid Vancouver Island markets. Multiple offers for in-demand real estate is becoming more common, with some offers at full asking prices with limited to no conditional periods. That being said, there continues to be market hesitation for assets with higher risk profiles, such as those located in markets that have been impacted by the onset of new supply.

Greater Victoria continues to be a favored destination for real estate investment capital given its historically stable and secure market environment. Capitalization rates for industrial, retail, and multi-residential assets are expected to remain relatively stable over the short term, while office product may see some upward pressure on rates due to a realignment of the market, principally in the form of future delivery of new product that is overhanging the market.

CHRISTINA DHESIAssociate, Victoria+1 250 414 [email protected] HERE to view profileQ1 2015 CAP RATES

VICTORIADOWNTOWN OFFICE

A B TREND


6.00% 6.25% 6.25% 6.75%

SUBURBAN OFFICE

A B TREND


6.00% 6.50% 6.25% 6.75%

INDUSTRIAL



6.25% 6.75% 6.25% 6.75%


RETAIL



6.00% 6.50% 6.25% 6.75% 6.50% 7.00%

MULTI-FAMILY



4.25% 4.50% 4.50% 5.00%

HOTEL



7.00% 8.50% 8.00% 10.00% 9.00% 11.50%

http://www.collierscanada.com/en/people/christina-dhesi

www.collierscanada.com COLLIERS INTERNATIONAL | P. 12

DOWNTOWN OFFICEMARKET A B TREND

CITY LOW HIGH LOW HIGH A B

Vancouver 4.25% 5.00% 4.50% 5.75%

Calgary 5.50% 6.25% 6.50% 7.00% p

Edmonton 5.75% 6.75% 6.25% 7.50% p p

Toronto 4.75% 5.75% 5.75% 6.50%

Ottawa 6.00% 6.25% 6.75% 7.25% p

Montreal 6.75% 6.50% 6.00% 6.50%

Winnipeg 5.50% 6.25% 6.25% 7.25%

Halifax 6.25% 7.00% 7.00% 7.25%

Victoria 6.00% 6.25% 6.25% 6.75%

SUBURBAN OFFICEMARKET A B TREND


Vancouver 5.50% 6.25% 6.00% 6.75%

Calgary 5.75% 6.50% 6.75% 7.25% p

Edmonton 6.50% 7.25% 7.00% 7.75% p p

Toronto 6.00% 7.25% 7.00% 7.75%

Ottawa 6.50% 7.00% 7.50% 8.00% p p

Montreal 6.75% 7.75% 7.25% 8.25%

Winnipeg N/A N/A 6.50% 7.25%

Halifax 6.50% 7.00% 7.00% 7.75%

Victoria 6.00% 6.50% 6.25% 6.75%

Q1 2015 CAP RATESCanadian Cap Rates


INDUSTRIALMARKET SINGLE-TENANT A MULTI-TENANT B TREND


Vancouver 4.75% 5.50% 5.25% 6.00%

Calgary 5.75% 6.25% 6.00% 6.75%

Edmonton 5.75% 6.50% 6.00% 7.00%

Toronto 5.25% 5.75% 6.25% 7.25%

Ottawa 6.00% 6.50% 6.00% 6.50%

Montreal 6.75% 7.50% 7.00% 7.75%

Winnipeg 6.00% 7.00% 6.25% 7.25%

Halifax 6.50% 7.00% 7.25% 7.75%

Victoria 6.25% 6.75% 6.25% 6.75%

MULTI-FAMILYMARKET HIGH-RISE LOW-RISE TREND

CITY LOW HIGH LOW HIGH H L

Vancouver 3.00% 3.25% 3.25% 4.25% q q

Calgary 4.25% 4.75% 4.50% 5.25%

Edmonton 5.00% 5.50% 5.50% 6.50% p

Toronto 3.75% 5.00% 3.50% 5.00% q

Ottawa 4.50% 5.00% 5.00% 5.50%

Montreal 5.00% 6.00% 6.00% 6.75%

Winnipeg 4.75% 5.75% 5.00% 6.00%

Halifax 4.90% 5.25% 5.25% 6.50%

Victoria 4.25% 4.50% 4.50% 5.00%



RETAILMARKET REGIONAL / POWER COMMUNITY STRIP MALL TREND

CITY LOW HIGH LOW HIGH LOW HIGH R C S

Vancouver 4.75% 5.50% 4.75% 5.75% 4.75% 5.75%

Calgary 5.25% 6.00% 5.50% 6.25% 6.00% 6.75%

Edmonton 5.50% 6.00% 5.75% 6.50% 5.75% 6.25%

Toronto 4.75% 5.75% 6.00% 6.75% 5.50% 6.25% p p

Ottawa 5.00% 5.50% 6.00% 6.50% 6.25% 6.75%

Montreal 5.75% 6.75% 6.90% 7.75% 7.00% 7.75%

Winnipeg 5.50% 6.25% 6.00% 6.75% 6.00% 7.00%

Halifax 5.25% 6.25% 6.50% 7.50% 6.25% 7.50%

Victoria 6.00% 6.50% 6.25% 6.75% 6.50% 7.00%

HOTELMARKET URBAN FULL SERVICE SELECT SERVICE LIMITED SERVICE TREND

CITY LOW HIGH LOW HIGH LOW HIGH U S L

Vancouver 6.00% 7.00% 7.25% 8.50% 7.25% 8.50%

Calgary 7.00% 8.50% 8.00% 9.25% 8.50% 10.00% p p p

Edmonton 7.75% 9.50% 8.75% 9.50% 8.75% 9.50% p p p

Toronto 6.25% 7.50% 7.50% 8.50% 9.00% 11.00%

Ottawa 6.50% 8.00% 8.50% 9.50% 9.25% 11.25%

Montreal 7.25% 9.00% 8.50% 9.75% 9.75% 11.50%

Winnipeg 7.75% 8.75% 8.75% 10.50% 10.00% 11.75% p p

Halifax 7.50% 8.50% 9.00% 10.00% 9.50% 11.00%

Victoria 7.00% 8.50% 8.00% 10.00% 9.00% 11.50%


CAPITALIZATION RATE REPORT - Canadian commercial …€¦ · CAPITALIZATION RATE REPORT Q1 2015....

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