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Canada makes strong case for more favourable property capitalization rates

If 10-year bonds are any sign, global positioning could be about to change
Toronto, Canada’s largest commercial real estate market. (Olivier Gariépy/CoStar)
Toronto, Canada’s largest commercial real estate market. (Olivier Gariépy/CoStar)

Institutional-grade commercial real estate in the United Kingdom and Western Europe has had lower property capitalization rates than in North America for a long time. However, recent trends in 10-year bond yields suggest this relatively favourable position may be about to change.

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