Report | Intelligent Investment
Canadian Cap Rates & Investment Insights Q1 2026
April 21, 2026 15 Minute Read
Investment Trends
Financial market volatility spiked late in Q1 2026 with the escalation of conflict in the Middle East, as investors tried to adjust to suddenly greater upside risks to inflation and downside risks to global economic growth. Bond yields in particular fluctuated sharply and impacted the cost of debt. While investment capital for real estate has been active, it has also been selective. This is likely to continue as investors gravitate towards high-quality assets and durable incomes in these uncertain times.
Overall, the national average all-properties cap rate edged lower by 2 bps quarter-over-quarter to 6.61% in Q1 2026. Despite swings in the Canada 10-year bond yield during the quarter, it finished effectively flat quarter-over-quarter, resulting in a marginally tighter cap rate spread of 317 bps.
In Q1 2026, real estate yields compressed slightly quarter-over-quarter for industrial and office assets. Retail cap rates were a bit more mixed with largely offsetting movements, and multifamily yields continued to inch higher.
Regional Investment Trends
Explore national cap rates by office, industrial, retail, multifamily, seniors housing, and hotel sectors, as well as local market cap rates in Victoria, Vancouver, Calgary, Edmonton, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Toronto, Ottawa, Montreal, Quebec City, and Halifax.
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Research Contacts
Capital Markets Contacts
Jeffrey Hurley
COO CBRE Capital (Canada) Inc.
