Cap rates by city / Saskatoon
Saskatoon cap rates in 2026
Apartment buildings in Saskatoon traded at cap rates of 5.25% to 6.75% in CBRE's second-quarter 2026 survey, the highest of the 13 Canadian cities CBRE surveys. Here is what sits behind that number, what CMHC says about vacancy and rents, and what a building is worth at the local yield.
Apartment cap rate
5.25% to 6.75%
CBRE, Q2 2026, Class A to B
Vacancy rate
3.3%
CMHC, October 2025
Average two-bedroom rent
$1,548
CMHC purpose-built, October 2025
Rent growth, 2025
5.2%
CMHC, two-bedroom, year over year
Run a Saskatoon building through the calculator
Preloaded with a six-unit building at Saskatoon's CMHC average two-bedroom rent, the city's vacancy rate, and generic expense assumptions ($1,800 tax and $600 insurance per unit, 8% maintenance, 5% management, $900 utilities per unit). The price is set so the building lands at the middle of the local range. Replace every number with your own.
Property & income
The price you would actually pay, not the tax assessment
All units combined
Operating expenses (annual)
Of gross rent; 5% to 10% is typical
0 if self-managed
Condo fees, snow, lawn care
Your market
What similar properties trade at in this market
Cap rate
6.00%
$73,489 of net operating income (NOI) on a $1,225,000 price
Cap rate ignores financing on purpose. It is NOI divided by price, so two buyers with different mortgages can compare the same building. The value at your target cap rate is the price at which this NOI would hit that yield, which makes it a negotiating anchor.
What the same building is worth across the range
The six-unit example above produces $73,489 of net operating income a year. Value is NOI divided by cap rate, so a half-point move in the market's cap rate changes the price by more than most renovations would:
| Cap rate | Building value |
|---|---|
| 5.25%low end | $1,399,784 |
| 6%middle | $1,224,811 |
| 6.75%high end | $1,088,721 |
Per unit: $233,297 at the low end to $181,454 at the high end.
Why Saskatoon trades where it does
Saskatoon has the highest apartment cap rates of the 13 cities CBRE surveys, at 5.25% to 6.75%, because it is a small, resource-linked market with a local buyer pool and a history of flat prices between commodity cycles. Buyers demand more income per dollar to compensate for slower appreciation and a longer exit. Potash, agriculture and the University of Saskatchewan drive demand.
Vacancy, rents and the 2026 outlook
The market tightened through 2025: vacancy sat at 3.3% in October, two-bedroom rents rose 5.2% to $1,548, and turnover fell as tenants stayed put to avoid the 7% premium on vacated units. With no rent control, owners of older stock have been able to push rents. Cap rates have compressed slightly from their 7% highs and could compress further if that rent growth holds.
Rent rules in Saskatchewan
Saskatchewan has no rent control. A landlord can raise rent by any amount with the written notice period set by the Office of Residential Tenancies. That rule sets how fast in-place income can grow, which is why two buildings with identical rent rolls can trade at different cap rates depending on how far below market their tenants sit.
Cap rate against your mortgage rate
At a 6% cap rate, a mortgage costing more than 6% makes leverage work against you: every borrowed dollar earns less than it costs until rents grow. In Saskatoon the cap rate clears typical 2026 mortgage rates, so leverage adds to the return and buildings can cash flow with a normal down payment. Put the same building through our rental property calculator to see the cash flow with the Canadian semi-annual mortgage formula.
Office, industrial and retail cap rates in Saskatoon
Apartments (multifamily, in CBRE's terms) are the tightest-priced asset in Saskatoon. The same survey puts downtown Class A office at 7.5% to 8%, Class A industrial at 6.5% to 7%, and neighbourhood retail at 6.75% to 7.5%. The spread over the 5.25% to 6.75% apartment range reflects leasing risk. A vacant apartment re-lets within weeks, while a vacant office floor can take years.
| Property type | Cap rate, Q2 2026 |
|---|---|
| Downtown office, Class A | 7.5% to 8% |
| Downtown office, Class B | 8.25% to 9.25% |
| Suburban office, Class A | 7% to 7.5% |
| Industrial, Class A | 6.5% to 7% |
| Industrial, Class B | 7.25% to 7.75% |
| Retail, regional mall | 6.5% to 6.75% |
| Retail, neighbourhood centre | 6.75% to 7.5% |
| Retail, strip | 6.5% to 7% |
CBRE Canadian Cap Rates & Investment Insights, Q2 2026 cap rate summary. Class A and B as defined by CBRE; regional, neighbourhood and strip are retail formats. Next refresh late October 2026.
Frequently asked questions
What is the average cap rate in Saskatoon?+
5.25% to 6.75% for apartment buildings in CBRE's Q2 2026 survey, the highest of any major city in CBRE's survey. Small multi-units and single-family rentals can exceed 6%, which is why Saskatoon attracts cash-flow investors from Ontario and BC.
Why are Saskatoon cap rates so high?+
A high cap rate is compensation for something. In Saskatoon it is a small market with few institutional buyers, an economy tied to potash and agriculture, and a long stretch of flat prices after the mid-2010s peak. The income is real; the appreciation is uncertain, and the market prices that in.
Does Saskatoon cash flow with a mortgage?+
Yes, usually. At a 6% cap rate and a 4.5% mortgage rate, leverage adds to your return instead of subtracting from it, which is the opposite of Vancouver and Toronto. Add Saskatchewan's 0.4% title transfer fee instead of land transfer tax and closing costs are among the lowest in Canada.
How Saskatoon compares
| City | Cap rate | Vacancy |
|---|---|---|
| Vancouver | 3.5% to 4.75% | 3.7% |
| Toronto | 3.85% to 5.15% | 3.0% |
| Montreal | 4.25% to 4.75% | 2.9% |
| Victoria | 4.25% to 5% | 3.3% |
| Winnipeg | 4.5% to 5.25% | 2.8% |
| London | 4% to 6% | 4.0% |
| Calgary | 4.5% to 5.5% | 5.0% |
| Halifax | 4.5% to 5.5% | 2.7% |
| Quebec City | 4.25% to 6% | 2.4% |
| Edmonton | 4.5% to 5.75% | 3.8% |
| Ottawa | 4.5% to 5.8% | 3.0% |
| Kitchener-Waterloo | 4.5% to 6% | 4.1% |
| Saskatoon | 5.25% to 6.75% | 3.3% |
Sources: CBRE Canadian Cap Rates & Investment Insights, Q2 2026 (cap rate summary, high-rise and low-rise Class A to B); CMHC Rental Market Report, October 2025 survey. Next refresh: CBRE Q3 figures in late October 2026, CMHC data in December 2026. Survey ranges describe stabilized, professionally managed buildings; individual sales print outside them. Measure your own deal with the cap rate calculator.