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Alberta, Saskatchewan, Manitoba and Newfoundland-Labrador lead the country in commercial activity
TORONTO, June 11, 2025 /CNW/ -- Investors are capitalizing on opportunities that allow for strategic repositioning, adaptive reuse and targeted investment throughout the country, as escalating global trade tensions, economic concerns and evolving market conditions weigh on sentiment, according to a report released today by REMAX Canada.
REMAX Canada's 2025 Commercial Real Estate Report examined first-quarter activity across 12 major markets from coast to coast and found that Canada's commercial landscape continues to evolve as investors and asset holders adapt acquisitions and asset management plans to optimize portfolios and performance against a changing climate. Multi-family and industrial were the top-performing asset classes, followed by retail. Commercial markets continue to move forward at a steady pace, fuelled by ongoing pressure on the country's existing housing stock, government policies set to advance growth such as the Housing Accelerator Fund, and a continued upswing in e-commerce sales.
Western Canada's commercial markets, alongside Newfoundland-Labrador, led the country in terms of commercial growth in 2025, buoyed by an increase in population, greater investment activity, and solid economic performance. Steady immigration and interprovincial migration in Alberta, Saskatchewan and Manitoba helped spur expansion, with shortages reported in several asset classes, while Newfoundland-Labrador's growing pipeline of resource and infrastructure projects is helping the province enter a period of renewed economic momentum.
"Canada's commercial real estate market is shifting to fundamentals this year," says Don Kottick, President, REMAX Canada. "What we're seeing is a pivot to purpose and practicality, prompting revitalization, a flight to quality, and a more discerning buyer pool. Institutional investors and Real Estate Investments Trusts (REIT) are cautiously re-entering the market—focused on acquisition, not disposition—as they target assets that promise long-term value in today's more complex operating environment."
To illustrate, Oxford Properties Group recently invested $730 million to acquire 50 per cent interest in seven office towers in Vancouver and Calgary, identifying now as an opportune time to rotate capital back into this asset class.
Population growth continues to propel the multi-family asset class, explains Kottick. Bolstered by public policy, both private and public investment is driving a resurgence in the construction of purpose-built rentals nationwide, while demand remains strong for existing portfolios. Industrial is the backbone of the commercial...