CAP rate is one of the first metrics a real estate investor will take into consideration when buying a commercial real estate investment. In short, capitalization rate or CAP rate shows the potential rate of return on the real estate investment, by dividing net operating income by current market value.
According to Cushman & Wakefield‘s latest CAP rate report (Q4 2017), average rates in Montreal stand at:
- 4.25% (low) – 5.25% (high) for high rise multiplexes (apartment buildings greater than 4 storeys in height or having more than 80 units).
- 5.00% – 6.00% for low rise multiplexes (apartment complexes having fewer than 80 units)
- 4.5% – 6.75% for Downtown offices
- 6%-7% for suburban offices
- 5.75-7.5% for industrial buildings
- 7-10% for hotels
- 4.5%-7% for retail opportunities
This article, Average CAP Rates In Montreal Per Property Type: Q4, 2017, appeared first on Shupilov News.