Canada’s commercial real estate market is showing signs of strategic growth in 2025, with the Prairies and Newfoundland and Labrador emerging as key drivers despite global trade tensions and economic uncertainty. According to Re/Max Canada’s 2025 Commercial Real Estate Report, investors are navigating the current landscape with renewed focus on practical, long-term value. The report, which reviewed Q1 activity across 12 major markets, points to a shift in investor behavior toward quality assets, revitalization, and purpose-driven acquisitions.
Re/Max Canada President Don Kottick emphasized that the market is reverting to fundamentals as institutional investors and REITs cautiously return. These groups are targeting commercial properties with long-term potential, responding to a complex environment shaped by inflationary pressures and global instability. Multi-family and industrial assets continue to lead performance, with retail following close behind, driven by population growth, housing policy initiatives like the Housing Accelerator Fund, and rising e-commerce activity.
The strongest regional growth was seen in Alberta, Saskatchewan, Manitoba, and Newfoundland and Labrador. These areas have benefitted from strong immigration and interprovincial migration trends, creating shortages in multiple asset classes and spurring new development. Newfoundland’s economic momentum is supported by a growing pipeline of resource and infrastructure projects, positioning it for sustained commercial growth.
Multi-family properties remain in high demand, fueled by public policy support and a persistent housing supply crunch. Purpose-built rental construction is accelerating across the country, while existing rental portfolios continue to attract investor interest. Industrial real estate also remains resilient, underpinned by Canada’s expanding logistics networks and supply chain infrastructure.
Although smaller, traditional shopping malls continue to face headwinds, retail overall is holding steady, especially in neighborhood centers anchored by essential services. As Kottick notes, commercial real estate may still face short-term challenges, but it is structurally positioned for long-term expansion once market conditions stabilize and economic clarity returns.
