Western Canada Cap Rates & Market Data
Current commercial real estate yields, vacancy and net rents across Calgary, Edmonton, Vancouver, Saskatoon and Regina — the numbers investors use to compare markets.
Updated Q2 2026 · Industrial · Office · Retail · MultifamilyFor investors weighing Western Canada against Toronto or Vancouver's gateway pricing, the math is the story. Alberta and Saskatchewan consistently offer wider cap rates — and therefore higher going-in yields — than Central Canada, while population growth and a recovering interest-rate environment have brought buyers back to the table. Below are the benchmark figures we track across the markets we cover, refreshed each quarter.
Cap rates by market & asset class
Cap rates below are benchmark ranges for stabilized, income-producing assets. Where a specific property lands within a range depends on building quality, tenant covenant, lease term and exact location. Gateway Vancouver prices tightest; the Prairie markets trade wider, which is precisely the yield premium that draws out-of-province capital.
Industrial
| Market | Class A / Logistics | Light / Multi-Tenant |
|---|---|---|
| Vancouver | 4.5% – 5.2% | 5.5% – 6.5% |
| Calgary | 5.5% – 6.5% | 6.5% – 7.5% |
| Edmonton | 5.8% – 7.0% | 6.5% – 8.0% |
| Saskatoon / Regina | 6.5% – 7.5% | 7.0% – 8.5% |
Multifamily (purpose-built rental)
| Market | Class A | Class B / Value-Add |
|---|---|---|
| Vancouver | 3.5% – 4.0% | 4.5% – 5.5% |
| Calgary | 4.5% – 5.5% | 5.5% – 6.5% |
| Edmonton | 5.0% – 6.0% | 6.0% – 7.5% |
| Saskatoon / Regina | 5.5% – 6.5% | 6.5% – 7.5% |
Office & retail (regional benchmarks)
| Segment | Cap Rate Range |
|---|---|
| Office — Class A downtown | 5.5% – 7.0% |
| Office — Class B stabilized | 7.5% – 9.5% |
| Office — Class B/C (vacancy risk) | 9.0% – 12%+ |
| Retail — grocery-anchored | 5.0% – 6.0% |
| Retail — strip / neighbourhood | 5.5% – 7.0% |
| Single-tenant net lease (national covenant) | 5.0% – 6.5% |
Vacancy & net rents — Q1 2026
Tight industrial vacancy across all three provinces continues to underpin rents. Saskatoon in particular runs among the lowest industrial vacancy in the country, while Alberta's logistics demand keeps quality space leasing ahead of older product.
| Market | Industrial Vacancy | Industrial Net Rent (/sf) |
|---|---|---|
| Calgary | ~3.0% – 5.2% | ~$10.49 |
| Edmonton | ~3.0% – 5.7% | ~$10 – $11 |
| Saskatoon | ~2.7% | ~$13.45 |
Vacancy figures vary by brokerage methodology (availability vs. headline vacancy); ranges shown reflect that spread across published Q1 2026 reports.
What the numbers say about each market
Calgary
Calgary industrial remains a landlord's market, with vacancy in the low single digits and net asking rents around $10.49/sf as higher-quality space leases first. Investor cap rates in the mid-5% to mid-6% range on Class A industrial offer a meaningful premium over Vancouver while sitting in one of Canada's fastest-growing major cities. Multifamily has compressed on the back of strong in-migration, but still yields above gateway markets.
Edmonton
Edmonton offers the widest industrial yields of the major Alberta markets — Class A in the high-5% to 7% range — reflecting a deep, affordable industrial base around the region's logistics and energy-services corridors. For yield-focused buyers, it is often the highest-cash-flow entry point in the province.
Saskatoon & Regina
Saskatchewan's largest markets trade at the widest cap rates we track, rewarding investors willing to look past the gateway cities. Saskatoon industrial vacancy fell to roughly 2.7% in Q1 2026 with net rents near $13.45/sf, and the Saskatoon CMA's population has grown more than 15% to nearly 330,000 — a demand backdrop that supports both rents and long-term values.
Vancouver / BC
Vancouver remains the tightest-priced market in the West, with sub-5% industrial and sub-4% Class A multifamily cap rates driven by chronic land constraint. For many investors it functions as the benchmark against which Prairie yields are measured — and found attractive.
How to read a cap rate
A capitalization rate is simply a property's annual net operating income divided by its price. A warehouse earning $300,000 net, priced at $5,000,000, trades at a 6% cap. A lower cap rate means a higher price (and usually lower perceived risk); a higher cap rate means a lower price and higher going-in yield. Investors use it to compare income properties across markets at a glance — which is exactly why Western Canada's wider caps draw capital from lower-yielding Central Canada.
Cap rates apply only to income-producing assets — leased industrial, retail, office and apartment buildings. Vacant land and owner-occupied buildings don't carry one.
This page is provided for general information only and is not investment, financial, or legal advice. Cap rates and market data move continuously and vary by asset; verify current figures and obtain professional advice before transacting.
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