Insights

Confidence at Exit Became a Habit One of the most persistent assumptions in Canadian multifamily underwriting over the past decade has been confidence at exit. Entry pricing may be debated, financing may be stressed, and rent growth may be moderated, but the terminal value almost always arrives with quiet certainty. Exit cap rates are typically set just low enough to make the numbers work, supported by familiar justifications: long-term housing shortages, demographic growth,

Underwriting Canadian Multifamily in 2026 The Assumptions That Quietly Break Deals For much of the past cycle, multifamily underwriting in Canada benefited from an unusually forgiving environment. Rent growth masked operational inefficiencies, narrowed the gap between optimistic assumptions and reality, and allowed deals to stabilize faster than expected. That environment has changed. As we move into 2026, flat rents are no longer a stress scenario in many markets, they are t

One of the quiet disciplines that separates durable real estate investors from short-term operators is an almost obsessive focus on exits. Not just an exit, but multiple exits. Markets rarely cooperate with our timelines, our assumptions, or our preferred outcomes. Investors who build wealth over the long term accept that reality early and structure their investments so that no single path determines success. Many investors only think about the exit at the end of the process.