Economic uncertainty amid ongoing trade wars drives tactical shift in Canada’s top commercial markets in 2025, says REMAX Canada

Press Release

June 11, 2025

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.

What we’re seeing is a pivot to purpose and practicality, prompting revitalization, a flight to quality, and a more discerning buyer pool.

Don Kottick, President, REMAX Canada

“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 sector, with growing strength in the country’s logistics corridors. While smaller, traditional malls continue to experience challenges, overall retail is resilient, with neighbourhood nodes outperforming, especially those anchored by essential shops and services. Although growing pains are expected, commercial markets are ultimately positioned for growth once the market shakes current transitory challenges and clarity emerges.

The most resilient and opportunity-rich markets are those where investors are proactively reshaping aging or underused assets to align with present and future demand.

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