Q2 2026

Canadian cap rate and investment trends

Avison Young’s quarterly cap rate and investment trends report, delivering data-driven insights to inform investment decisions across evolving market cycles.

What's happening with cap rates?

Where are cap rates trending? This remains one of the most common questions across the commercial real estate industry as investors seek to understand pricing dynamics, changing investment preferences, and broader capital market trends. While the answer is rarely straightforward, market evidence, professional valuations, and investor sentiment all play an important role in assessing current conditions.

Trends to look out for in 2026:

  • Multifamily: bifurcated market conditions, new supply at all-time highs, and positive signs for household formation
  • Industrial: opportunities with federal AI policy, quality drives demand, and speculation retreats from new supply
  • Office: office absorption fuels investor optimism, capital flows into best-in-class, and transaction sensitivity to price
  • Retail: the emergence of portfolio transactions, investors pivoting to peripheral markets, and cautious consumer sentiment shaping spending.

“Since February, we’ve been closely watching bond yields inch higher amid geopolitical tensions, putting upward pressure on mortgage rates and cap rates. ”

- Mark Fieder, Principal and President, Canada

Our dedicated teams have placed a strong emphasis on not only presenting cap rate data but also enriching readers with a deeper understanding of what’s happening behind the figures presented within the report. Our ongoing analysis will focus on the driving factors behind cap rates in multi-residential, industrial, office, and retail investment properties across Canada.

We look forward to providing you with the wealth of market intelligence gathered from Avison Young’s experts, accompanied by their insightful commentary on a quarterly basis.
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