Capitalization Rates Change from Last Quarter Survey Results

Retail
Vancouver Calgary Edmonton Toronto Ottawa Montreal Halifax

Regional
7.25 7.25 7.75 7.00 7.50 7.50 8.00 7.50% 7.75% 8.25% 7.75% 8.00% 8.00% 8.50%

&
7.25 7.75 8.25 7.00 7.50 7.75 8.50 5.00 7.00 7.00 6.50 7.75 7.50 7.75 -

Q4 04 CAP RATE SURVEY

Neighbourhood
7.25 7.75 8.25 7.50 8.75 8.50 8.50 7.75% 8.25% 8.75% 8.50% 9.25% 9.00% 9.25%

Sector/Power
7.75% 8.25% 8.75% 8.50% 8.00% 8.50% 9.50%

Strip
6.75 8.50 9.50 7.25 9.75 8.50 9.50 - 7.75% - 9.00% -10.50% - 9.00% -10.25% - 9.25% -10.50%

Apartment
Vancouver Calgary Edmonton Toronto Ottawa Montreal Halifax

High Rise A
4.50 6.50 6.75 6.25 7.25 7.00 7.25 5.00% 7.00% 7.00% 6.75% 7.75% 7.75% 7.75%

High Rise B
6.00% 7.50% 7.25% 7.00% 8.25% 8.00% 8.25%

Low Rise A
5.00 7.00 7.25 6.25 7.50 8.00 8.00 6.00% 7.50% 7.75% 6.75% 8.25% 8.50% 8.50%

Low Rise B
6.25 7.75 7.75 6.50 7.50 8.50 8.50 6.75% 8.25% 8.00% 7.00% 8.25% 9.00% 9.50%

Downtown Office
Vancouver Calgary Edmonton Toronto Ottawa Montreal Halifax

AA
7.25 8.00 8.00 7.25 7.50 8.25 8.75

A
7.50% 8.50% 8.50% 7.75% 8.25% 8.75% 9.25% 8.00 8.75 9.00 7.75 8.25 8.75 9.25

B
- 8.50% - 9.25% -10.00% - 8.25% - 8.75% - 9.50% - 9.75% Notes on Survey
Capitalization Rate ranges are indicative of properties leased at stabilized occupancy with market rent levels in place. AA" refers to Trophy projects. They are generally less than 15 years old, maintained to a high standard and attract the highest quality lease covenants. The lease profile typically has an average duration of more than ten years. The ownership is typically institutional. "A" Buildings have many of the same characteristics as the "AA"'s. They attract high quality lease covenants, are well maintained and well located. However, they may be somewhat older and the tenant base is less secure (5 to 10 years average lease duration). "B" Buildings are representative of the bulk of properties within each market segment. They attract a mix of national, regional and local lease covenants (generally 3 to 5 year terms). The primary investors are smaller cap, public real estate companies and private investors.

7.00 - 7.50% 7.75 - 8.25% N/A 6.75 - 7.25% 7.00 - 7.50% 7.25 - 7.50% N/A

Suburban Office
Vancouver Calgary Edmonton Toronto Ottawa Montreal Halifax 8.25 8.50 8.75 8.00 8.50 8.75 9.25

A
8.75% 9.00% 9.50% 8.50% 9.25% 9.25% 9.75% 8.25 9.00 9.50 8.50 9.50 9.50 9.75

B
- 8.75% - 9.50% -10.50% - 9.00% -10.50% -10.50% -10.25%

Industrial
Vancouver Calgary Edmonton Toronto Ottawa Montreal Halifax 7.25 8.00 7.50 6.75 7.25 7.75 8.25

A
7.75% 8.50% 8.00% 7.25% 8.00% 8.50% 9.00% 7.50 8.75 8.50 7.25 8.00 8.50 9.50

B
- 8.25% - 9.25% - 9.50% - 8.00% - 9.00% - 9.50% -10.00%

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