The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Bayview Village is seen on December 17, 2010.
Bayview Village is seen on December 17, 2010.
(Jennifer Roberts For The Globe and Mail)

Rumoured Toronto mall sale would break records

It appears to be too soon to say that pricing in Canada’s commercial property market has turned a corner, with Bay Street buzzing over rumours that a Toronto shopping mall might sell for a new record-low cap rate.

Cap rates, or capitalization rates, measure the return that an owner is likely to receive from a real estate investment, by comparing the operating income (the rent that tenants pay minus the landlord’s expenses) to the price that was paid for the asset.