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Multi-family leading target

A study of Canada's commercial real estate market by Altus Insite notes that multi-family investments pay the smallest returns but are seen as the most "stable property investment" in a generally optimistic market.

A study of Canada's commercial real estate market by Altus Insite notes that multi-family investments pay the smallest returns but are seen as the most "stable property investment" in a generally optimistic market.

The findings are in Altus' Investment Trends Survey, which polled 300 investors, managers, property owners, lenders and analysts on their take on the commercial market.

The survey found that yield for suburban multi-residential ranges from a low of 4.4 per cent in Metro Vancouver to a high of 6 per cent in Halifax.

This asset class remains popular because residential vacancy rates have been constantly declining nationwide, the survey found.

Altus' survey of investor sentiment found that nearly 40 per cent expect values to continue to increase and 57 per cent expect no change in values. Just 4 per cent expect real estate values to decrease.


from Western Investor September 2012