Tariff threats bring a new source of hesitation to what had been an expected pickup in commercial real estate investment activity in 2025.

Vancouver is the rare exception where market analysts project multifamily cap rates will rise this spring, but that's in the context of continuing exceptionally low rates.

Cap rates trended upwards for downtown office, hotels and most retail categories during the fourth quarter of 2020, while compressing further for industrial and low-rise multifamily properties.

Altus Group's Q3 investment trends survey for the four benchmark asset classes show that the Overall Capitalization Rate (OCR) was little changed at 5.14 per cent.

Static cap rates reflect limited transactions in the second quarter of 2020, but commercial real estate analysts express confidence that asset values are holding under COVID-19-related pressures.

In a saturated rental market, investors need to consider new options to unlock higher cap rates. One viable option that is gaining traction across Canada's larger cities is co-living.

Five major Canadian markets exhibit differing dynamics, but demand for multifamily properties is consistent.