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INVESTMENT PROPERTIES (Tables)
 12 Months Ended
Dec. 31, 2021
Investment property [abstract]  
Schedule of roll forward of investment property balances
The following table presents a roll forward of investment property balances for the years ended December 31, 2021 and 2020:
 
 Year ended Dec. 31, 2021Year ended Dec. 31, 2020
(US$ Millions)Commercial
properties		Commercial
developments		TotalCommercial
properties		Commercial
developments		Total
Balance, beginning of year$70,294 $2,316 $72,610 $71,565 $3,946 $75,511 
Changes resulting from:    
Property acquisitions491 80 571 647 108 755 
Capital expenditures796 758 1,554 1,140 857 1,997 
Property dispositions(1)
(1,299)(351)(1,650)(2,339)(21)(2,360)
Fair value (losses) gains, net1,791 171 1,962 (1,607)219 (1,388)
Foreign currency translation(558)(37)(595)322 (44)278 
Transfers between commercial properties and commercial developments635 (635)— 2,709 (2,709)— 
Reclassifications of assets held for sale and other changes(9,837)(2)(9,839)(2,143)(40)(2,183)
Balance, end of year(2)
$62,313 $2,300 $64,613 $70,294 $2,316 $72,610 
(1)Property dispositions represent the carrying value on date of sale.
(2)    Includes right-of-use commercial properties and commercial developments of $557 million and $24 million, respectively, as of December 31, 2021 (2020 - $729 million and $10 million, respectively). Current lease liabilities of $118 million (2020 - $35 million) has been included in accounts payable and other liabilities and non-current lease liabilities of $558 million (2020 - $712 million) have been included in other non-current liabilities.
Schedule of key valuation metrics for investment properties
The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis:

  Dec. 31, 2021Dec. 31, 2020
Consolidated propertiesPrimary valuation
method		Discount
rate		Terminal
capitalization
rate		Investment
horizon
(yrs.)		Discount
rate		Terminal
capitalization
rate		Investment
horizon
(yrs.)
Core OfficeDiscounted cash flow
United StatesDiscounted cash flow7.0 %5.6 %126.9 %5.6 %12
CanadaDiscounted cash flow5.9 %5.2 %105.9 %5.2 %10
AustraliaDiscounted cash flow6.1 %5.3 %106.6 %5.7 %10
EuropeDiscounted cash flow4.9 %3.8 %105.2 %3.8 %10
BrazilDiscounted cash flow7.7 %7.3 %107.6 %7.0 %10
Core RetailDiscounted cash flow7.0 %5.3 %107.0 %5.3 %10
LP Investments OfficeDiscounted cash flow9.6 %7.1 %79.7 %7.2 %7
LP Investments RetailDiscounted cash flow8.6 %6.7 %108.7 %7.0 %10
Mixed-useDiscounted cash flow9.1 %6.4 %107.3 %5.2 %10
Multifamily(1)
Direct capitalization4.6 %n/an/a4.9 %n/an/a
Triple Net Lease(1)
Direct capitalizationn/an/an/a6.2 %n/an/a
Student Housing(1)
Direct capitalization4.3 %n/an/a4.9 %n/an/a
Manufactured Housing(1)
Direct capitalization4.3 %n/an/a4.8 %n/an/a
(1) The valuation method used to value hospitality, multifamily, triple net lease, student housing, and manufactured housing properties is the direct capitalization method. At December 31, 2021, the overall implied capitalization rate used for properties using the direct capitalization method was 4.3% (December 31, 2020 - 5.3%).
The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities:
 
Type of asset/liability Valuation technique
Foreign currency forward contracts Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate
Interest rate contracts Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate
 
The table below presents the valuation techniques and inputs of Level 3 assets:
 
Type of asset/liability Valuation techniques Significant unobservable input(s) Relationship of unobservable input(s) to fair value
Securities - FVTPL/FVTOCI Net asset valuation (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period)
(b) Discount rate		 (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value
(b) Decreases (increases) in the discount rate would increase (decrease) fair value
Schedule of investment properties measured at fair value
The following table presents the partnership’s investment properties measured at fair value in the consolidated financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above in Note 2(i), Summary of Significant Accounting Policies, Fair value measurement.
 
Dec. 31, 2021Dec. 31, 2020
Level 3Level 3
(US$ Millions)Level 1Level 2Commercial propertiesCommercial developmentsLevel 1Level 2Commercial propertiesCommercial developments
Core Office
United States$— $— $14,689 $497 $— $— $14,682 $411 
Canada— — 4,678 59 — — 4,721 381 
Australia— — 2,618 146 — — 2,366 365 
Europe— — 2,569 320 — — 2,526 173 
Brazil— — 89 — — — 309 — 
Core Retail— — 18,991 — — — 20,324 — 
LP Investments
LP Investments Office— — 7,880 774 — — 7,946 781 
LP Investments Retail— — 2,001 28 — — 2,538 — 
Hospitality(1)
105 — — — 84 — 
Multifamily— — 1,616 — — — 2,442 — 
Triple Net Lease— — — — — — 3,719 — 
Student Housing— — 3,056 476 — — 2,757 205 
Manufactured Housing— — 3,808 — — — 2,784 — 
Mixed-Use— — 213 — — — 3,096 — 
Total$— $— $62,313 $2,300 $— $— $70,294 $2,316 
The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above:
 
 Dec. 31, 2021Dec. 31, 2020
(US$ Millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial assets        
Securities designated as FVTPL17 218 1,965 2,200 — 123 1,596 1,719 
Securities designated as FVTOCI13 — 95 108 — — 86 86 
Derivative assets— 144 — 144 — 236 — 236 
Total financial assets$30 $362 $2,060 $2,452 $— $359 $1,682 $2,041 
Financial liabilities        
Capital securities - fund subsidiaries$— $— $859 $859 $— $— $863 $863 
Derivative liabilities— 498 — 498 — 688 — 688 
Total financial liabilities$— $498 $859 $1,357 $— $688 $863 $1,551 
The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2021 and 2020:
 
 Dec. 31, 2021Dec. 31, 2020
(US$ Millions)Financial
assets		Financial
liabilities		Financial
assets		Financial
liabilities
Balance, beginning of year$1,682 $863 $1,371 $922 
Additions553 — 324 — 
Dispositions(88)— (10)— 
Fair value (losses) gains, net and OCI366 2 (3)(59)
Other(453)(6)— — 
Balance, end of year$2,060 $859 $1,682 $863 
Schedule of sensitivity analysis
The following table presents a sensitivity analysis to the impact of a 25 basis point (“bps”) increase of the discount rate and terminal capitalization or overall implied capitalization rate (“ICR”) on fair values of the partnership’s commercial properties for the year ended December 31, 2021, for properties valued using the discounted cash flow or direct capitalization method, respectively:

Dec. 31, 2021
(US$ Millions)Impact of +25bps DRImpact of +25bps TCRImpact of +25bps DR and +25bps TCR or +25bps ICR
Core Office
United States$337 $449 $774 
Canada91 143 231 
Australia79 139 215 
Europe49 109 156 
Brazil2 2 3 
Core Retail421 682 1,044 
LP Investments
LP Investments - Office132 275 403 
LP Investments - Retail58 85 133 
Mixed-use5 6 11 
Multifamily(1)
— 80 80 
Student Housing(1)
— 168 168 
Manufactured Housing(1)
— 209 209 
Total$1,174 $2,347 $3,427 
(1)The valuation method used to value multifamily, student housing, and manufactured housing properties is the direct capitalization method. The impact of the sensitivity analysis on the discount rate includes properties valued using the DCF method as well as properties valued using an overall implied capitalization rate under the direct capitalization method.