Well, the new rules introduced last week shouldn't have a significant impact on the "Primary Residence" residential market, however, small revenue properties (under 5 units) are much more at risk now due to the 80% Loan to Value cap for a CMHC insured mortgage. This combined with a rising interest rate environment at some point in the next 2 years points directly to an increase in Capitalization Rates which have been remarkably low for these properties.
Lending standards for Commercial Real Estate have been pretty tight for over a year now so until interest rates move significantly higher I don't expect to see much of an increase in the Cap Rates unless our economy takes a significant turn down.
Lease rates are still under downward pressure but in some respects this is a healthy reset for the Victoria market place as rents were beginning to become prohibitively high for a number of business.
Anyway, I hope you're enjoying the Olympics, it's hard to be inside today with the weather as beautiful as it is, it doesn't feel right to call this winter....
Cheers
View all of my commercial real estate listings on-line at www.naivictoria.ca
Saturday, February 20, 2010
Subscribe to:
Posts (Atom)
Posts
