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News & Research


Date Entered: 11/27/2020
Subject: 2020 June Cap Rate Report (Updated)
Attachment: 221.pdf (Original file name: 2014358 Cap Rate Report June 2020 (Updated).pdf)

The Cap Rate Report: expert insight into the commercial property investment market in Atlantic Canada. This is an updated version of our earlier June 2020 issue and does not include the impact of Covid19. Although our June Cap Rate Report shows the High and Low capitalisation rates, they are based on one Standard Deviation either side of the Average (Mean). Approximately 68% of property transactions should fall within this range. However since the Mean (Average) Capitalisation Rate is tied to actual transactions, it reflects the quality, size and age of properties typically sold in the geographic area identified in the survey.  For example, Low Rise Apartment Buildings, located in Fredericton, are generally older stock, so the Mean Capitalisation Rate primarily reflects transactions involving this type of property.  Properties with buildings which are ten years or less in age are frequently outliers because the average building stock is older. In order to properly reflect these outliers for apartment buildings we have “broken out” Capitalisation Rates for sales comprising buildings that are ten years or less in age, where sales data is available. To learn more, click on the attachment and view this PDF document using an Acrobat Reader Plug-in (available as a free download from the Adobe Web Site, www.adobe.com).

The Cap Rate Report is a free service provided by Turner Drake & Partners Ltd. to the mortgage industry, investors, vendors, purchasers and property developers in Atlantic Canada. The Cap Rate Report complements our Market Surveys of office and industrial space in H.R.M, Moncton, Saint John, Fredericton, Charlottetown and St. John’s to give clients a comprehensive view of the various markets in the region. The Market Surveys and The Cap Rate Report are archived on the public area of our web site at www.turnerdrake.com/newsresearch/surveys.asp. The full results of our Market Surveys are available for purchase on a one-off or subscription basis. They include a wealth of detailed and building-specific market information on rental rates, property taxes and operating expenses, vacancy and absorption rates, and building amenities. To purchase or subscribe to the Market Surveys, please contact Alexandra Baird Allen at 902-429-1811 Ext. 323 or abairdallen@turnerdrake.com.