Report | Intelligent Investment
Canadian Cap Rates & Investment Insights Q2 2026
July 21, 2026 15 Minute Read
Investment Trends
While a U.S.-Iran memorandum of understanding offered a brief reprieve in the Middle East conflict, the recent re-escalation of hostilities underscores the fragility of the situation and the considerable distance that remains toward a durable and comprehensive peace deal. Amid this persistent uncertainty, economic indicators have been mixed, bond yields continue to fluctuate and the Bank of Canada is expected to remain in a holding pattern. Canada, however, continues to shine as a market of safety and stability, increasingly attracting the attention of institutional and global capital alike.
The national average all-properties cap rate has continued to gradually compress, declining 3 bps quarter-over-quarter to 6.58% in Q2 2026. Bond yields have been volatile and while the cap rate spread to the Canada 10-year yield widened slightly to 320 bps in Q2 2026, that spread remains in flux.
In Q2 2026, national average cap rates compressed quarter-over-quarter across most asset classes led by declines in seniors housing and retail. More modest decreases were also recorded in office and industrial while multifamily and hotel yields effectively held flat.
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
Peter Senst*
President Canadian Capital Markets, National Investment Team
Lic. *Sales Representative
