Insights

For much of the past decade, the central variable in multifamily acquisitions was price. Investors focused on acquiring assets at competitive cap rates in markets supported by strong demographic trends and consistent rental demand. Financing, while important, rarely dictated whether a deal worked. Debt was widely available, interest rates were historically low, and refinancing assumptions generally pointed toward improvement rather than constraint. In that environment, underw

In every cycle, real estate underwriting reflects a certain degree of optimism. That optimism is rarely explicit. It tends to appear in small adjustments: slightly stronger rent growth, a vacancy rate that assumes efficient operations, an exit cap rate that implies stable capital markets, or refinancing terms that presume favourable debt conditions in the future. Each assumption on its own appears reasonable. None would typically be described as aggressive. Yet when these ass

The same core market data is reviewed daily to assess direction, volatility, and underwriting visibility. This month’s release showed modest upward pressure across the Government of Canada curve, widening in select corporate spreads, and continued softness in housing starts. Here’s what caught our attention: long-dated yields have risen meaningfully over the past three months, while forward-looking housing activity remains negative on a year-over-year basis. Featured Metric D