Canada Commercial Real Estate Market Report and Forecast 2025-2034

Canada Commercial Real Estate Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Canada commercial real estate market size reached around USD 75.62 billion in 2024. Aided by the growing demand for flexible, hybrid office spaces and the increasing focus on sustainable, energy-efficient buildings to meet environmental goals, the market is projected to grow at a CAGR of 5.00% between 2025 and 2034 to attain nearly USD 123.5 billion by 2034.

The Canada commercial real estate market growth is being driven by increasing urbanisation, infrastructure development, and strong demand across various property segments. The expansion of industries such as retail, logistics, office spaces, and hospitality has significantly contributed to the rising investments in commercial properties. With Canada being one of the most stable economies, its commercial real estate sector continues to attract both domestic and international investors seeking long-term value and stable returns.

As per the Canada commercial real estate market analysis, the demand for office spaces is evolving as companies adapt to hybrid work models and flexible office arrangements. While traditional office spaces remain a key component of the market, the shift towards co-working spaces and flexible office solutions is becoming more prominent. Businesses are increasingly focusing on high-quality, well-located office spaces with advanced technological infrastructure and sustainability features. The demand for eco-friendly and energy-efficient buildings is also on the rise, with companies seeking LEED-certified office spaces to align with corporate sustainability goals.

The retail segment of the Canada commercial real estate market is undergoing a transformation due to the growing influence of e-commerce and changing consumer preferences. While brick-and-mortar retail spaces continue to play a significant role, there is a noticeable shift towards mixed-use developments that combine retail, residential, and entertainment facilities. Shopping centres and malls are focusing on experiential retail, incorporating leisure and dining options to attract consumers. Additionally, retail spaces in prime locations with high foot traffic continue to perform well, particularly those that accommodate luxury brands and essential services.

The industrial real estate sector is witnessing strong demand, primarily driven by the expansion of the e-commerce and logistics industries. The surge in online shopping leading to increased requirements for warehouses, distribution centres, and fulfilment hubs is aiding the Canada commercial real estate market expansion. Investors are capitalising on the growth of last-mile delivery facilities, which are essential for improving supply chain efficiency. The demand for modern logistics spaces equipped with automation and smart technologies is rising as companies seek to enhance operational efficiency and reduce delivery times.

Sustainability and green building initiatives are playing a crucial role in shaping the Canada commercial real estate market dynamics. Investors and developers are increasingly prioritising energy-efficient buildings, smart infrastructure, and environmentally friendly designs. The push towards sustainable real estate development is not only driven by regulatory requirements but also by the growing demand from tenants and businesses looking to reduce their carbon footprint. The adoption of renewable energy sources, water conservation measures, and smart building technologies is enhancing the long-term value of commercial properties.

The financing and investment landscape for the Canada commercial real estate market remains robust, supported by low interest rates and strong demand from institutional investors. Real estate investment trusts (REITs) and private equity firms continue to play a significant role in the market, seeking high-yield opportunities in key urban centres. The influx of foreign capital, particularly from investors looking for stable and secure assets, is further driving market activity. Strategic partnerships and joint ventures between developers and investors are becoming increasingly common, allowing for the development of large-scale commercial projects.

Despite the positive outlook, the Canada commercial real estate market faces certain challenges, including economic uncertainties, rising construction costs, and regulatory complexities. The ongoing shift in workplace dynamics and evolving consumer behaviours require market participants to adapt and innovate. Developers and investors must remain agile in response to changing market conditions, leveraging technology and data analytics to make informed decisions. Additionally, addressing affordability and housing concerns in mixed-use developments is essential to ensuring sustainable urban growth.

The competitive landscape of the Canada commercial real estate market is characterised by major real estate developers, property management firms, and investment companies focusing on expansion and innovation. The introduction of smart buildings, integrated real estate solutions, and digital transformation strategies is helping companies differentiate themselves in the market. Real estate service providers are also leveraging data-driven insights to optimise property management and enhance tenant experiences.

Overall, the Canada commercial real estate market is poised for continued growth in the forecast period, driven by urban expansion, technological advancements, and sustainable development initiatives. The increasing demand for office spaces, industrial properties, and mixed-use developments underscores the resilience of the market. As investors and developers navigate emerging trends and economic conditions, the focus on innovation and sustainability will be key to shaping the future of commercial real estate in Canada.

Market Segmentation

The market can be divided based on type and region.

Market Breakup by Type

• Office
• Retail
• Hospitality
• Industrial
• Others

Market Breakup by Region

• Northern Canada
• British Columbia
• Alberta
• The Prairies
• Central Canada
• Atlantic Canada

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Canada commercial real estate market. Some of the major players explored in the report by Expert Market Research are as follows:

• Jones Lang LaSalle IP, Inc.
• Westbank Corp.
• Onni Property Management Services Ltd.
• Cadillac Fairview Corporation Limited
• Brookfield Corp.
• Colliers International Group Inc.
• Avison Young (Canada) Inc.
• Anthem Properties Group Ltd.
• Canada Land Company Limited
• Shindico
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.