What The Bayview Deal Proves
The reported $500M sale of Bayview Village in Toronto's north end shows pricing remains strong in the right markets, says CBRE director of research Ross Moore: "Good, urban real estate continues to have the ability to command record pricing." (Bad urban real estate has to go sit in the corner.) What this transaction doesn't reflect is the fact that cap rates have shifted slightly upwards in the broader investment market. Quality product isn't easy to find, so when a deal like this shows up, demand is there, and pricing will be impressive.