Current Comments
Fall 2025 into the New Year 2026
Interest rates have stabilized and are moving downward. This will help with leverage and cash flow on all multifamily deals. The vacancy rate in Calgary has shifted in favor of renters, as CMHC’s incentive programs for new buildings have significantly increased the city’s inventory. Expect fewer calls on your ads and fewer showings. More new inventory is still coming onto the market, and these new builds require much higher rents to generate any return for owners. Find a good location—that’s always the key to top rents and better tenants. Enhance the building you purchase with modern interior cosmetic upgrades. Make sure the upgrades are easy to maintain and clean, and they will last for many years.
Building prices have stabilized, although many owners are still speculating on higher prices, and some buildings are priced too high. Remember: if the building envelope is in good condition—e.g., windows, roof, exterior finish, and the mechanical systems are newer or very well maintained—then the money you spend on interior upgrades will attract better rents and tenants. Now let’s get those buildings you want under contract and start 2026 in great shape.
New buyers come to me all the time and they do not understand commercial financing. Usually they speak to a banker or a residential mortgage broker, but they themselves do not grasp how commercial underwriting works or the costs involved in securing the debt.
Financing costs look like this:
- appraisal
- Level 1 environmental report
- building inspection reports fee
- lender fees
- mortgage broker fees
- legal fees
If you are unaware of these costs, speak to an honest, knowledgeable individual who will educate you. When it comes to acquiring a decent property, again consult someone with market experience. I am always shocked at the lack of knowledge among some agents who contact me; if they took the time to conduct extensive research, they would better represent their clients and not waste anyone’s time. So jump on the multifamily bandwagon as soon as you can—we’re in for a great ride ahead.