New research from CBRE Canada suggests lenders are entering 2026 with renewed confidence in parts of Canada’s commercial real estate sector, even as concerns about economic conditions continue to shape lending decisions. The annual lenders’ survey, based on responses from 47 institutions managing more than $200 billion in loans, highlights shifting priorities across property types and markets nationwide.
One of the most notable developments is a rebound in sentiment toward office properties. After several years of caution, lenders are showing increased willingness to expand office-related lending budgets in 2026, marking the first improvement in outlook for the sector in six years. Even so, multifamily housing remains the most attractive asset class overall, while retail properties continue to draw moderate interest. Industrial assets have seen slightly weaker momentum, and land remains the least favoured category among lenders.
Despite improving confidence in office properties, lenders remain cautious about aging buildings that may require significant upgrades or repositioning to remain competitive. Many respondents indicated that modernization costs and tenant expectations remain key challenges. At the same time, lenders reported they are frequently offering both short-term and long-term refinancing renewals at maturity, often with increased loan proceeds available to borrowers.
Regionally, Vancouver has moved into the top position for lender appetite for the first time in a decade, surpassing Toronto. Calgary also climbed the rankings, moving into third place after overtaking both Montreal and Ottawa. Edmonton continued its steady rise as well. In contrast, Hamilton recorded one of the sharpest declines in lender interest, which analysts attributed partly to tariff pressures affecting the steel and automotive sectors in the region.
Economic uncertainty remains the leading concern for lenders heading into 2026. About three-quarters of respondents identified broader economic weakness as a major challenge, followed by concerns about property market fundamentals, valuation uncertainty, and gaps between buyer and seller expectations. However, worries related to regulatory changes, housing policy shifts, and interest rate uncertainty have all declined compared with last year’s survey results.
The outlook for lending activity itself appears stronger. Nearly seven in ten lenders reported plans to actively pursue new loans this year, a trend expected to increase competition and potentially lower borrowing costs. Many institutions also indicated they intend to expand lending volumes significantly, with a substantial share targeting increases of 10 percent or more. Overall, the findings suggest that while select property types may still face challenges, lenders are broadly prepared to deploy additional capital across most segments of Canada’s commercial real estate market in 2026.
