Canada Commercial Real Estate Market Size, Share Analysis and Forecast Report (2026-2035)

Properties used for business purposes, such as office buildings, retail stores, warehouses, and industrial properties, are referred to as commercial real estate. The global commercial real estate market is anticipated to expand due to the increasing population density in urban areas, which leads to a higher demand for commercial spaces, such as offices, retail stores, and industrial properties.

Studies show that in the global commercial real estate market, North America accounts for most of the real estate value because of the region’s rising demand for office spaces, rapidly growing e-commerce sector, and high employment rates. In North America, the Canada commercial real estate market is growing rapidly and is predicted to flourish in the future due to rapid population growth, tight labour markets, and elevated household savings.

Key Trends and Developments

The trend of mixed-use estate development is fuelled by the need for convenience and the optimisation of land use in urban areas. Moreover, mixed-use developments align with the rising demand for live-work-play environments, offering individuals the opportunity to reside, work, and access amenities in proximity. Additionally, the government has launched the Smart Buildings Initiative, led by Public Services and Procurement Canada, with the goal of enhancing the energy efficiency of federal buildings, reducing greenhouse gas emissions, and cutting energy costs. These factors impact the Canada commercial real estate market value.

Furthermore, the Federal Lands Initiative, a USD 200 million fund overseen by the Canada Mortgage and Housing Corporation (CMHC), supports the transfer of surplus federal lands and buildings to eligible proponents for development or renovation, particularly for use as affordable and sustainable housing. These initiatives and policies underscore the government's commitment to influencing and supporting the Canada commercial real estate market demand, particularly in the realms of housing, energy efficiency, and sustainable development.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Canada Commercial Real Estate Market Segmentation

Office real estate contributes to market growth due to low office vacancy rates in the country

According to Canada commercial real estate market analysis, the office real estate is expected to propel the market growth in the forecast period. Canadian cities stand out in North America with impressively low office vacancy rates, primarily attributed to a surge in employment rates that demands an expanded corporate footprint. In 2022, Microsoft secured a substantial deal, acquiring approximately 4,00,000 square feet at the B6 building in Vancouver, North America, earmarked for office space. Construction of such large corporate offices can boost the Canada commercial real estate market demand.

On the other hand, industrial real estate refers to properties used for industrial activities, including production, manufacturing, and the storage and distribution of goods, or warehousing. Growing export and import activity is one of the key factors driving the demand for industrial real estate, especially warehouse space, making it a profitable investment opportunity. Additionally, as per the Canada commercial real estate market forecast, industrial sector is emerging as the fastest-growing segment because the e-commerce companies, such as Amazon Canada, Ebay Canada, and Walmart require large inventories or warehousing space to fulfil their online orders and to keep the product returns.

Competitive Landscape of Canada Commercial Real Estate Industry

Other key players in the Canada commercial real estate market analysis include Onni Property Management Services Ltd., Cadillac Fairview Corporation Limited, Brookfield Corp., Anthem Properties Group Ltd., Canada Land Company Limited, and Shindico, among others.

Alberta region holds a significant market share due to the increasing demand for commercial spaces

Alberta  is anticipated to increase the Canada commercial real estate market share in the forecast period due to high demand for commercial spaces in urban centres. This can lead to enhanced lease rates and lower vacancies. The industrial sector is growing in Canada, and out-of-province investors are looking towards Alberta because the average lease rates have risen 3.5% year-over-year in some areas, and it can generate higher rents. Additionally, the ongoing infrastructure developments in Alberta, such as transit expansions and road enhancements, are set to bolster property values in proximity to these projects.

On the other hand, the Canada commercial real estate market value is anticipated to increase because of the rapid industrialisation in North Canada. For instance, in 2023, Toronto's real estate asset management agency, CreateTO, unveiled plans for a groundbreaking mass timber rental building on Dundas Street West. This 10-storey structure, featuring 100 rental units, allocated the ground floor spanning over 2,000 square feet for commercial purposes. Thus, the demand for commercial real estate is expected to grow in Canadian regions, thus increasing the Canada commercial real estate market share in the forecast period.