2025 is upon us! While we're only a few days into the new year, it’s already shaping up to be a challenging one for Canadians. As I write this newsletter, Bank of America has just announced that they don’t expect the Federal Reserve to implement any further interest rate cuts in 2025 (link here). Our neighbors to the south, who jokingly like to claim Canada as their 51st state, are bracing for an unpredictable new government. Meanwhile, their economy seems to be doing much... [read more]

For an investor, or anyone that is considering purchasing commercial real estate, the most common question that needs to be answered is this; WHAT IS THE CAP RATE? What does that even mean? Simply put, capitalization is the process of converting the income of a given property into a capital value. A capitalization (cap) rate has more than one rate embodied in it (i.e. the discount rate and the recapture rate). There are two different types of capitalization in the CRE market; direct... [read more]