
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 82.94 Billion |
Market Size (2030) | USD 119.57 Billion |
CAGR (2025 - 2030) | 7.59 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Canada Commercial Real Estate Market Analysis
The Canada Commercial Real Estate Market size is estimated at USD 82.94 billion in 2025, and is expected to reach USD 119.57 billion by 2030, at a CAGR of 7.59% during the forecast period (2025-2030).
The Canadian commercial real estate landscape is experiencing significant transformation driven by changing workplace dynamics and evolving consumer behaviors. The industrial sector continues to demonstrate remarkable resilience, with national vacancy rates reaching historic lows of 1.5% in Q2 2022, while average asking net rents surged by 17% year-over-year to USD 12.11 per square foot. This unprecedented demand for industrial space is primarily fueled by e-commerce growth, supply chain reorganization, and the need for last-mile delivery facilities in major urban centers.
The office sector is undergoing a fundamental shift as organizations adapt to hybrid work models and prioritize quality over quantity in their space requirements. Major markets across Canada recorded an average office vacancy rate of 15.7% in 2022, reflecting the ongoing adjustment to new workplace strategies. However, there is a notable flight to quality, with Class A properties experiencing stronger demand and maintaining more stable occupancy rates compared to Class B and C properties, as companies seek to attract employees back to the workplace with premium amenities and sustainable features.
The retail sector has demonstrated remarkable resilience and adaptation, with several markets reporting significant recovery. For instance, Montreal's retail market witnessed a 30% increase in sales in 2022 compared to the previous year, highlighting the sector's strong rebound. Retailers are increasingly adopting omnichannel strategies, transforming physical locations into experiential destinations while integrating digital capabilities to meet evolving consumer preferences and shopping behaviors.
Investment activity in Canadian commercial real estate remains robust, particularly in key urban markets. Ottawa's commercial real estate market, for example, recorded investment activity reaching USD 3.8 billion, demonstrating strong investor confidence in the market's fundamentals. The market is witnessing increased interest from institutional investors and REITs, particularly in industrial assets and well-located urban properties with value-add potential. This investment momentum is supported by strong population growth, employment gains, and the country's reputation for stable real estate fundamentals.
Canada Commercial Real Estate Market Trends
Growing Industrial & Logistics Demand
The robust expansion of retail platforms and sophisticated distribution networks has fundamentally transformed Canada's industrial commercial real estate landscape. Major retailers have been actively acquiring or constructing advanced centers to meet the growing "just-in-time" requirements, particularly in logistics and warehousing. This surge in demand has led to historically low vacancy rates, with national industrial availability reaching just 1.6% in Q2 2022, while average asking net rents hit USD 12.11, representing a remarkable 17% increase year-over-year. The industrial sector's strength is further evidenced by substantial pre-leasing activity, with 64.4% of space under construction already committed.
The market has witnessed significant investment from major players expanding their industrial footprint across Canada. Companies like Amazon, Lowe's, Home Depot, Canadian Tire, and Walmart have made billions worth of investments in the province as they expand their industrial spaces. This expansion is particularly notable in markets like Montreal, which experienced unprecedented rental growth of 32% in 2022, the strongest of any major Canadian city. The industrial sector's momentum is further supported by the growing e-commerce sector, driving demand for warehousing and distribution facilities, particularly in strategic locations with access to major transportation routes and urban centers.
Office Market Recovery & Premium Space Demand
The Canadian office market has demonstrated remarkable resilience and recovery, with downtown vacancy rates decreasing in seven of Canada's ten major office cities during Q3 2022. This recovery is characterized by a notable flight to quality, where tenants are actively seeking premium office spaces in prime locations. Major corporations are making significant commitments to office space, as evidenced by Microsoft's approximately 400,000 square feet lease at the B6 building in Vancouver and PointClickCare's expansion to 90,000 square feet over three floors at The Well in Toronto. These substantial leasing activities reflect growing confidence in the office sector and a strategic focus on high-quality spaces to attract and retain talent.
The demand for premium office space is particularly evident in markets like Calgary, the Waterloo Region, and Vancouver, where both downtown and suburban office vacancy rates have declined amid increased leasing transactions. Class A buildings are experiencing strong demand, with landlords maintaining stable asking rates rather than negotiating lower rents. This trend is supported by tenants' growing emphasis on environmental, social, and governance factors, air and light quality, design, and accessibility in their office space decisions. The market has also witnessed innovative approaches to office development, including the conversion of several downtown office towers to apartment buildings in some markets, demonstrating the sector's adaptability to changing market dynamics.
Multi-Family Housing Growth
The multi-family sector has emerged as a cornerstone of Canada's commercial real estate market, driven by robust demographic trends and increasing urbanization. The national vacancy rate for rental units stands at historically low levels, creating a significant supply-demand imbalance that continues to drive investment in this sector. This trend is particularly evident in major urban centers where rising home prices, with average single-family homes in Vancouver reaching USD 1.1 million and Toronto averaging just over USD 1 million, have made home ownership increasingly challenging for many Canadians, thereby boosting rental demand.
The sector's strength is demonstrated by consistently strong rent collections, maintaining around 97% even during challenging economic periods, which has attracted both institutional and private investors. Purpose-built rental development has seen significant momentum, with substantial increases in multi-unit construction activity. The market has witnessed notable rent growth, with incoming tenants showing double-digit growth in Vancouver and nearly 10% in Toronto. Secondary markets have also experienced remarkable performance, with areas like Oshawa, Cobourg, Belleville, and Owen Sound witnessing significant rent increases, while Quebec has maintained steady growth of 2-5%.
Retail Market Resilience
The retail sector has demonstrated remarkable resilience, evidenced by a substantial 30% increase in retail sales in 2022 compared to the previous year. This growth is particularly noteworthy given the constrained supply of new retail space, primarily due to rising construction costs. The limited new supply has created favorable conditions for existing retail properties, especially in prime locations and well-established retail corridors. The market has seen strong demand for grocery-anchored retail in strong trade areas, with pricing for such properties reaching higher levels than pre-pandemic valuations.
The sector's strength is further reinforced by evolving consumer behaviors and retailer adaptations. Businesses have shown increased confidence in moving into retail spaces, supported by strong consumer demand growth and positive future sales indicators. The supply constraints in retail construction have contributed to strengthening rental rates, with some markets experiencing notable increases. For instance, Montreal witnessed a 5.1% increase in retail rents in 2021, with continued upward pressure on rates supported by strong holiday season performance and the portion of retail rents tied to retail sales. The market has also seen innovative approaches to retail development, including the redevelopment of older shopping centers into mixed-use projects, particularly in markets like Calgary.
Segment Analysis: By Type
Industrial and Logistics Segment in Canada Commercial Real Estate Market
The Industrial and Logistics segment continues to dominate the Canadian commercial real estate market, holding approximately 31% market share in 2024. This segment's prominence is driven by the rapid growth of e-commerce and the increasing demand for warehouse and distribution facilities across major Canadian cities. The market has witnessed unprecedented demand levels, particularly in key logistics hubs like Toronto, Vancouver, and Montreal, where vacancy rates remain at historic lows. The segment's strength is further reinforced by robust pre-leasing activity, with many new developments being fully committed before completion. Major logistics providers and retailers are actively expanding their footprint, particularly in last-mile delivery facilities to serve growing urban populations.

Hospitality Segment in Canada Commercial Real Estate Market
The Hospitality segment is emerging as the fastest-growing sector in the Canadian commercial real estate industry, with projections indicating an annual growth rate of approximately 10% from 2024 to 2029. This remarkable growth trajectory is fueled by Canada's thriving tourism industry and increasing business travel activities. The segment is experiencing significant transformation with the development of new luxury hotels, boutique properties, and mixed-use developments in major urban centers. Investment in the hospitality sector is being driven by strong occupancy rates and rising average daily rates, particularly in gateway cities like Toronto, Vancouver, and Montreal. The segment is also benefiting from innovative concepts like extended-stay properties and lifestyle hotels that cater to evolving traveler preferences.
Remaining Segments in Canada Commercial Real Estate Market
The Multi-family, Office, and Retail segments continue to play vital roles in shaping the Canadian commercial real estate landscape. The Multi-family segment remains resilient, supported by strong population growth and urbanization trends across major metropolitan areas. The Office segment is adapting to new workplace dynamics with an increased focus on flexible workspaces and amenity-rich environments. The Retail segment is undergoing significant transformation, with properties being reimagined to create experiential shopping destinations and mixed-use developments that combine retail with residential and office spaces. These segments collectively contribute to the market's diversity and stability, each responding to unique market drivers and evolving consumer preferences. The commercial property value in these segments reflects their adaptability and importance in the overall market.
Canada Commercial Real Estate Market Geography Segment Analysis
Commercial Real Estate Market in Toronto
Toronto stands as Canada's premier commercial real estate hub, commanding approximately 25% of the national market share in 2024. The city's commercial landscape is characterized by a diverse mix of office towers, industrial facilities, and retail spaces, particularly concentrated in the financial district and along major transit corridors. The market demonstrates remarkable resilience through its robust institutional framework, sophisticated tenant base, and continuous infrastructure development. Toronto's commercial sector benefits from its status as Canada's financial capital, housing major banking headquarters, investment firms, and professional services companies. The city's commercial properties showcase a strong flight-to-quality trend, with tenants increasingly favoring premium spaces that offer advanced amenities and sustainability features. The market's strength is further reinforced by its extensive public transit network, including the expanding subway system and the GO Transit network, which enhances property values along major transportation routes. For those seeking commercial property for sale in Toronto Canada, the city's dynamic market offers numerous opportunities.
Commercial Real Estate Market in Vancouver
Vancouver's commercial real estate market is projected to demonstrate exceptional growth, with an anticipated CAGR of approximately 10% from 2024 to 2029. The city's unique geographical constraints, surrounded by mountains and water, create a natural barrier to expansion, driving property values upward. Vancouver's commercial sector is experiencing significant transformation through sustainable development initiatives and technology-driven innovations. The city's strong connections to Asian markets continue to attract international investment, particularly in premium office and retail spaces. The market benefits from Vancouver's reputation as one of North America's most livable cities, drawing top talent and businesses across various sectors. The technology sector's expansion has become a major driver of commercial real estate demand, particularly in areas like Mount Pleasant and False Creek Flats. The city's commitment to sustainable development has resulted in numerous LEED-certified buildings, setting new standards for commercial property development.
Commercial Real Estate Market in Montreal
Montreal's commercial real estate market distinguishes itself through its unique blend of historical architecture and modern development. The city's commercial sector benefits from its strong aerospace, artificial intelligence, and technology sectors, which drive demand for both traditional and specialized commercial spaces. Montreal's market demonstrates particular strength in adaptive reuse projects, transforming historical industrial buildings into modern office and mixed-use spaces, especially in areas like Mile-Ex and Mile-End. The city's commercial landscape is enhanced by its extensive underground pedestrian network, connecting major buildings and transit hubs. The market benefits from Montreal's position as a major educational hub, with universities driving demand for research and innovation spaces. The city's bilingual nature and cultural diversity make it particularly attractive to international businesses seeking a North American presence. The commercial sector continues to evolve with significant development along the REM light rail network, creating new opportunities for transit-oriented commercial development. Montreal real estate market statistics indicate a robust growth trajectory driven by these dynamic sectors.
Commercial Real Estate Market in Calgary
Calgary's commercial real estate market demonstrates remarkable adaptability and transformation in response to changing economic conditions. The city's commercial sector has successfully diversified beyond its traditional energy sector base, attracting technology companies and logistics operations. Calgary's market benefits from its strategic location as a distribution hub for Western Canada, driving significant demand for industrial and logistics spaces. The city's commercial landscape is evolving through innovative office-to-residential conversion projects, particularly in the downtown core. The market shows strength in suburban office development, where new mixed-use projects are creating vibrant commercial nodes. Calgary's commercial sector benefits from the city's young, highly educated workforce and relatively affordable cost of living compared to other major Canadian cities. The market demonstrates particular resilience through its adaptive reuse strategies and focus on creating sustainable, amenity-rich commercial environments. According to Calgary real estate statistics, the city's market is poised for continued growth and diversification.
Commercial Real Estate Market in Other Cities
Beyond the major metropolitan areas, Canada's commercial real estate market shows diverse patterns of growth and development across various cities. Markets such as Ottawa, Edmonton, and Winnipeg each present unique opportunities and challenges shaped by their local economic conditions and demographic trends. Secondary markets are increasingly attracting attention from investors and developers seeking higher yields and growth potential. These cities often benefit from government presence, educational institutions, and growing technology sectors, driving demand for various commercial property types. The markets demonstrate strength in specialized sectors, such as government offices in Ottawa and industrial spaces in Edmonton. Regional markets are also showing innovation in property development, with increasing focus on mixed-use projects and sustainable building practices. These cities often offer advantages in terms of affordability and quality of life, attracting businesses looking for cost-effective expansion opportunities while maintaining high standards of commercial space. Real estate market statistics from these regions highlight the potential for growth and investment.
Canada Commercial Real Estate Industry Overview
Top Companies in Canada Commercial Real Estate Market
The Canadian commercial real estate market features prominent players like Onni Group, Westbank Corp., Pinnacle International, Anthem Properties, Canderel, and Maxwell Realty driving innovation and growth. Companies are increasingly focusing on sustainable development practices and smart building technologies to meet evolving market demands. Strategic partnerships and joint ventures have become common practice to share risks and leverage complementary strengths, particularly in large-scale mixed-use developments. Market leaders are expanding their portfolios through both new development projects and strategic acquisitions, with a particular emphasis on industrial and multi-family segments. The commercial real estate industry has seen a significant push toward digital transformation, with companies investing in property technology solutions to enhance operational efficiency and tenant experience. Companies are also diversifying their geographical presence beyond major metropolitan areas into secondary markets to capture emerging opportunities and spread risk.
Fragmented Market with Strong Local Players
The Canadian commercial real estate market exhibits a fragmented structure with a mix of domestic and international players competing across different property segments. Local developers and property managers maintain strong market positions due to their deep understanding of regional markets and established relationships with stakeholders. The market has witnessed increased participation from institutional investors and international real estate investment trusts, particularly in prime assets across major metropolitan areas. The industry has experienced significant consolidation through mergers and acquisitions, with larger players acquiring smaller firms to expand their portfolios and achieve economies of scale. Property management companies are increasingly integrating vertically to offer end-to-end services, from development to asset management.
Recent years have seen a surge in joint ventures and strategic partnerships, particularly for large-scale mixed-use developments and master-planned communities. International investors, especially from Asia and Europe, have shown growing interest in Canadian commercial real estate, leading to increased competition and sophistication in deal structures. The market has also witnessed the emergence of specialized players focusing on specific property types or geographical regions, creating niches in areas such as industrial logistics facilities and multi-family developments. Private equity firms have become increasingly active in the market, bringing additional capital and expertise while driving professional management practices across the industry.
Innovation and Adaptability Drive Market Success
Success in the Canadian commercial real estate market increasingly depends on companies' ability to adapt to changing market conditions and embrace technological innovation. Market leaders are investing heavily in sustainable building practices and smart property management systems to meet growing environmental consciousness and operational efficiency demands. Companies that can effectively integrate digital solutions while maintaining strong tenant relationships are better positioned to capture market share. The ability to identify and capitalize on emerging submarkets, particularly in secondary cities experiencing population growth, has become crucial for sustained success. Firms that maintain flexible capital structures and strong balance sheets are better equipped to weather market cycles and seize opportunities during downturns.
For new entrants and smaller players, success lies in developing specialized expertise in specific property types or geographical markets rather than competing directly with established players across all segments. Building strong relationships with local stakeholders, including municipal governments and community organizations, remains crucial for navigating approval processes and securing prime development opportunities. Companies must also focus on creating differentiated value propositions, whether through innovative design, superior amenities, or specialized services tailored to specific tenant segments. The increasing importance of environmental, social, and governance (ESG) factors in investment decisions requires companies to develop and implement comprehensive sustainability strategies to remain competitive and attract institutional capital. Leveraging commercial real estate analytics and commercial real estate intelligence can further enhance decision-making processes and strategic planning.
Canada Commercial Real Estate Market Leaders
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Onni Group
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Amacon
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Pinnacle International
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Maxwell Realty
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Manulife Real Estate
- *Disclaimer: Major Players sorted in no particular order

Canada Commercial Real Estate Market News
- June 2023: Prologis, Inc. and Blackstone announced a definitive agreement for Prologis to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for USD 3.1 billion, funded by cash. The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.
- May 2023: An experiential real estate investment trust, VICI Properties Inc., announced that it had signed agreements to buy the real estate assets of Century Casinos, Inc.'s Century Downs Racetrack and Casino in Calgary, Alberta, Century Casino St. Albert in Edmonton, Alberta, and Century Casino St. Albert in St. Albert, Alberta, for a total purchase price of USD 164.7 million. This move demonstrates both their continued drive to grow abroad and their faith in the Canadian gaming industry. They are also excited to assist Century's asset monetization strategy, which will open up new opportunities for their cooperation.
Canada Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic Scenario and Consumer Sentiment
- 4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
- 4.3 Government Initiatives, Regulatory Aspects for the Commercial Real Estate Sector
- 4.4 Insights on Existing and Upcoming Projects
- 4.5 Insights on Interest Rate Regime for General Economy, and real estate lending
- 4.6 Insights on rental yields in commercial real estate segment
- 4.7 Insights on capital market penetration and REIT presence in commercial real estate
- 4.8 Insights on public-private partnerships in commercial real estate
- 4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, and property management)
- 4.10 Impact of COVID-19 on the market
5. MARKET DYNAMICS
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5.1 Drivers
- 5.1.1 Evolution of retail sector driving the market
- 5.1.2 Office spaces in Toronto and Vancouver are increasing
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5.2 Restraints
- 5.2.1 High interest rates tend to slowdown business growth
- 5.2.2 Increasing cost of real estate affecting the growth of the market
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5.3 Opportunities
- 5.3.1 Increasing demand from international buyers
- 5.3.2 Digitization of properties contributing to the growth of the market
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5.4 Industry Attractiveness-Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers / Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION (Market Size By Value)
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6.1 By Type
- 6.1.1 Office
- 6.1.2 Retail
- 6.1.3 Industrial
- 6.1.4 Multi-family
- 6.1.5 Hospitality
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6.2 By Key Cities
- 6.2.1 Toronto
- 6.2.2 Vancouver
- 6.2.3 Calgary
- 6.2.4 Ottawa
- 6.2.5 Montreal
- 6.2.6 Edmonton
- 6.2.7 Rest of Canada
7. COMPETITIVE LANDSCAPE
- 7.1 Market Concentration
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7.2 Company Profiles
- 7.2.1 Developers
- 7.2.1.1 Onni Group
- 7.2.1.2 WestBank Corp.
- 7.2.1.3 Amacon
- 7.2.1.4 Pinnacle International
- 7.2.1.5 Anthem Properties Group Limited
- 7.2.1.6 Knights Bridge Development Corp.
- 7.2.1.7 Chard Development
- 7.2.1.8 TAG Developments
- 7.2.1.9 Goodman Commercial
- 7.2.1.10 Redev Properties*
- 7.2.2 Real Estate Brokerage Firms
- 7.2.2.1 Manulife Real Estate
- 7.2.2.2 Harvey Kalles Real Estate
- 7.2.2.3 Maxwell Realty*
- 7.2.3 Other Companies (startups, associations, etc.)
- 7.2.3.1 Brookfield Global Integrated Solutions
- 7.2.3.2 Relogix
- 7.2.3.3 Realtor 360
- 7.2.3.4 Hausway
- 7.2.3.5 Dream Office REIT
- 7.2.3.6 Cominar REIT
- 7.2.3.7 Allied REIT*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. INVESTMENT ANALYSIS
10. APPENDIX
Canada Commercial Real Estate Industry Segmentation
Commercial real estate (CRE) is a property used exclusively for business-related purposes or to provide a workspace rather than as a living space. Commercial real estate is often leased to tenants to conduct income-generating activities. This broad real estate category can include everything from a single storefront to a huge shopping center.
The Canadian commercial real estate market is segmented by type (office, retail, industrial, multi-family, and hospitality) and by city (Toronto, Vancouver, Calgary, Ottawa, Montreal, and Edmonton, as well as other cities).
The report offers market size and forecasts for the commercial real estate market in Canada in terms of value (USD) for all the above segments.
By Type | Office |
Retail | |
Industrial | |
Multi-family | |
Hospitality | |
By Key Cities | Toronto |
Vancouver | |
Calgary | |
Ottawa | |
Montreal | |
Edmonton | |
Rest of Canada |
Canada Commercial Real Estate Market Research Faqs
How big is the Canada Commercial Real Estate Market?
The Canada Commercial Real Estate Market size is expected to reach USD 82.94 billion in 2025 and grow at a CAGR of 7.59% to reach USD 119.57 billion by 2030.
What is the current Canada Commercial Real Estate Market size?
In 2025, the Canada Commercial Real Estate Market size is expected to reach USD 82.94 billion.
Who are the key players in Canada Commercial Real Estate Market?
Onni Group, Amacon, Pinnacle International, Maxwell Realty and Manulife Real Estate are the major companies operating in the Canada Commercial Real Estate Market.
What years does this Canada Commercial Real Estate Market cover, and what was the market size in 2024?
In 2024, the Canada Commercial Real Estate Market size was estimated at USD 76.64 billion. The report covers the Canada Commercial Real Estate Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Canada Commercial Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Canada Commercial Real Estate Market Research
Mordor Intelligence provides a comprehensive analysis of the Canadian commercial real estate market. We combine robust commercial real estate data with expert industry insights. Our research thoroughly examines trends in commercial property value, commercial real estate growth rates, and detailed metrics on commercial real estate market size. The report offers in-depth coverage of commercial property for sale in Toronto and other major markets. It also includes commercial real estate value estimates to help stakeholders make informed decisions. Our analysis features real estate forecast next 5 years projections, incorporating statistics on commercial property value increase per year and commercial real estate sales data.
Stakeholders benefit from our detailed examination of commercial building value dynamics and commercial real estate growth patterns across Canada. The report, available as an easy-to-download PDF, features insights into the real estate forecast next 5 years Canada. It includes assessments of commercial property estimated value and analysis of commercial real estate market size. Our research supports various industry participants, from commercial leasing companies to investors, with actionable intelligence on commercial real estate estimates and trends in commercial property increase in value. The report's new trend commercial real estate data helps stakeholders navigate market challenges while identifying opportunities in the commercial real estate market landscape.