The Cambridge commercial real estate market in 2026 sits inside two published data buckets and one named-supply pipeline, with no Cambridge-specific cap rate series in any national report. CBRE rolls Cambridge into its Kitchener-Waterloo bucket; Altus rolls Cambridge into its Southwestern Ontario industrial block. The closest published reading is the Waterloo EDC supply pipeline (iPort Cambridge, iPort Franklin, The Link Cambridge, IP Park). The KW envelope per CBRE Q4 2025 places Industrial Class A at 5.75-6.50% and Class B at 6.00-7.00%; Southwestern Ontario industrial availability was 7.2% in Q1 2026, down 40 bps year-over-year per Altus - the only major regional industrial segment that improved against the national trend.
Key Takeaways
- Cambridge has no separately published cap rate series. CBRE Q4 2025 lists Cambridge inside the Kitchener-Waterloo bucket; Altus Q1 2026 industrial lists Cambridge inside Southwestern Ontario.
- The KW-bucket envelope per CBRE Q4 2025 is the closest published proxy: Industrial Class A 5.75-6.50%, Class B 6.00-7.00%; Downtown Office A 6.00-6.75%; Multifamily High Rise A 4.25-4.75%.
- Southwestern Ontario industrial availability decreased 40 bps year-over-year to 7.2% in Q1 2026 per Altus - the only major regional industrial segment that improved against the national trend.
- The Waterloo EDC pipeline (iPort Cambridge, iPort Franklin, The Link Cambridge, IP Park) is the load-bearing demand signal for Cambridge industrial - the one Cambridge-specific dataset that is named, dated, and trackable.
What data is and isn't published for Cambridge specifically
No national quarterly cap rate report - CBRE, Altus, Colliers, Cushman and Wakefield, Avison Young, or JLL - publishes Cambridge cap rates as a standalone series. CBRE folds Cambridge into the Kitchener-Waterloo bucket because the KCW CMA is treated as a single institutional-survey market. Altus's Q1 2026 industrial update reports Southwestern Ontario as a regional block; Cambridge product sits inside it but is not broken out. CMHC's KCW CMA portal publishes rental and vacancy data at CMA level but not cap rates. Any page quoting a single headline "Cambridge cap rate" is using the KW rollup, extrapolating from one transaction, or inventing the number - none of which are defensible inputs to a CUSPAP 2026 valuation.
KW-bucket cap rates from CBRE Q4 2025 - the closest published proxy for Cambridge
The KW-bucket figures below include Cambridge transactions in CBRE's underlying market data; CBRE does not disaggregate them. This is the closest published proxy for Cambridge cap rates on the open web as of Q1 2026.
| Asset class | Kitchener-Waterloo bucket (CBRE Q4 2025) - includes Cambridge | Canada national avg |
|---|---|---|
| Downtown Office Class AA | N/A (no AA series) | 6.88% (CBRE) / 6.59% (Altus) |
| Downtown Office A / B | 6.00 - 6.75% / 6.50 - 7.25% | - |
| Suburban Office A / B | 6.50 - 7.50% / 7.00 - 7.75% | - |
| Industrial A / B | 5.75 - 6.50% / 6.00 - 7.00% | 5.91% / 6.42% (CBRE national) |
| Multifamily High Rise A | 4.25 - 4.75% | 4.44% (CBRE) |
| Multifamily New Construction | 4.25 - 4.75% | 4.63% (CBRE) |
| Retail Strip (anchored) | 5.50 - 6.35% | - |
| Retail Regional / Power | 6.00 - 6.50% | 6.44% (Altus Tier I) |
Source: CBRE Q4 2025 Canadian Cap Rate Report, Kitchener-Waterloo page (includes Cambridge transactions). National averages from CBRE Q4 2025 PDF and Altus Q4 2025 ITS. KW bucket has no Downtown Class AA series.
Cambridge industrial is materially larger and more institutional than Cambridge office, so KW Industrial Class A at 5.75-6.50% is the most likely-relevant line for most Cambridge commercial files. There is no equivalent of Toronto's Trophy office product anywhere in the KW-Cambridge market - an asymmetry to name explicitly rather than import via a Toronto comp.
Industrial - the Waterloo EDC supply pipeline reads as Cambridge demand signal
Cambridge's industrial picture is the most data-rich segment of the city's commercial market because the supply side is named, dated, and publicly tracked. Waterloo EDC's real estate inventory identifies the active Cambridge parks: iPort Cambridge and iPort Franklin (large-format speculative Class A logistics on a multi-stage delivery cadence), The Link Cambridge (mid-to-large format flex), and IP Park (105 Allendale) (established mid-bay flex). The mix splits between speculative Class A logistics and mid-bay flex - the exact product the Waterloo Region absorbed faster than any other Canadian industrial market in Q1 2026.
Southwestern Ontario industrial availability sat at 7.2% in Q1 2026, down 40 bps year-over-year per the Altus Q1 2026 industrial update, while national availability moved to 6.2% (+40 bps YoY). The region delivered ~424,000 sf across three buildings in Q1 2026 at ~75% available at delivery; regional availability improved despite the new supply. Cross-Ontario read: Ontario industrial cap rate trends.
Office and multifamily - the limitations of small-market reporting
Office. Most institutionally-tracked Class A office inside the KW bucket sits in downtown Kitchener and Waterloo rather than Cambridge, so a Cambridge office file is appraised primarily on direct-comparison evidence with the KW envelope as overlay. The Class AA compression narrative (25 bps QoQ nationally in Q4 2025, the largest in over 13 years per Altus) has no Cambridge analogue - there is no Cambridge Trophy office.
Multifamily. KW Multifamily High Rise A at 4.25-4.75% sits at or below the CBRE national High Rise A average of 4.44%. CMHC flags purpose-built rental starts running ahead of condo apartment starts in the KW-CMA while condo investor demand is weak; Cambridge has a meaningful share of that purpose-built supply along the Hespeler and Galt corridors.
How an AACI appraiser sources Cambridge-specific comps when published data rolls up
A defensible Cambridge commercial valuation in 2026 stacks four data layers in order of weight. First, Cambridge-specific transaction comps - sold transactions in the same submarket within the last 12-18 months, adjusted for asset quality and lease terms. Second, the Waterloo EDC supply pipeline. Third, the KW-bucket CBRE envelope as a sanity-check overlay. Fourth, the Southwestern Ontario industrial print and the BoC overnight rate at 2.25% (held April 29, 2026, fourth consecutive hold) as the macro frame.
CUSPAP 2026, mandatory for AACI assignments completed on or after April 1, 2026, requires triangulation across the income, direct-comparison, and (where applicable) cost approaches. For a Cambridge file the direct-comparison approach carries disproportionate weight - the income-approach inputs from national reports are scaffolding, not comp-set substitutes. This is the work of a Kitchener-Waterloo practice reading this market since 1973.
Frequently asked questions
Is Cambridge tracked separately by CBRE?
No. CBRE's Canadian Cap Rate Report tracks Kitchener-Waterloo as a single bucket that includes Cambridge transactions in its underlying market data; Cambridge is not disaggregated as a standalone city in any CBRE quarterly. Altus rolls Cambridge into the Southwestern Ontario regional block. There is no published, Cambridge-specific cap rate series on the open web as of Q1 2026.
What cap rate should I expect on a Cambridge industrial property?
The closest published proxy is the CBRE Q4 2025 KW-bucket range: Industrial Class A 5.75-6.50%, Class B 6.00-7.00%. That range includes Cambridge transactions. The actual cap rate on a specific Cambridge asset depends on lease term, tenant covenant, location relative to the named pipeline, and direct-comparison evidence from Cambridge transactions in the last 12-18 months.
How does Cambridge compare to KW or Hamilton?
Cambridge is part of Kitchener-Waterloo in CBRE data, so the two cannot be separately compared. Hamilton is not tracked by name in the CBRE report as systematically as KW or Toronto, so a Cambridge-versus-Hamilton comparison relies on direct-comparison evidence rather than published quarterlies. Southwestern Ontario industrial improved against trend in Q1 2026 (7.2% availability, -40 bps year-over-year per Altus); Hamilton industrial sits inside that same regional block.
Further reading
- Ontario commercial cap rates 2026 - the cross-Ontario pillar synthesis.
- Kitchener-Waterloo commercial market report - the KW envelope in full, the bucket Cambridge sits inside.
- Guelph commercial real estate market - the parallel sibling rollup market.
- Ontario industrial cap rate trends - the cross-Ontario industrial picture the Cambridge pipeline contributes to.
Commission a Cambridge commercial appraisal. If you need a CUSPAP 2026-compliant commercial appraisal in Cambridge - signed by an AACI-designated practitioner from a firm that has maintained a Cambridge comp set across four cycles - request a Cambridge commercial appraisal.
Update log: 2026-05-15 - Initial publication. Cambridge cap rate disclosure framed against CBRE Q4 2025 Canadian Cap Rate Report (KW bucket includes Cambridge) and Altus Q1 2026 Canadian Industrial Market Update (Southwestern Ontario includes Cambridge). Regional industrial figure 7.2% availability (-40 bps YoY) per Altus Q1 2026 (May 1, 2026). BoC overnight rate held at 2.25% on April 29, 2026. Cambridge supply pipeline grounded in Waterloo EDC named-park inventory. Will be updated when CBRE Q1 2026 PDF exposes KW-specific tables or if Altus disaggregates Cambridge.
