Commercial real estate investors growing more active — and more selective

After a turbulent phase for commercial real estate, investors are getting excited again, though they remain “highly selective,” according to Remax Canada. 

Remax’s 2026 Commercial Real Estate Report, released today, found office leasing in particular picked up in the first-quarter across 12 major Canadian markets, as return-to-office mandates drum up renewed demand for premium space. 

“While uncertainty shaped much of 2025, we’re now seeing a clear shift in investor behaviour,” said Damon Conrad, vice president of Remax Canada Commercial. 

“Capital remains cautious and focused on preservation, but as financial conditions stabilize, deferred demand is beginning to re-emerge. Investors are highly selective, but they are increasingly prepared to act where income stability and long-term value are evident.”

Demand concentrates around premium office space

Canada’s office market continues to divide between high-quality, amenity-rich buildings and older properties struggling to attract tenants. Demand has remained strongest for well-located Class A space in downtown cores, while aging assets continue to face leasing pressure in both urban and suburban markets.

Return-to-office policies have helped boost absorption in several major centres, although elevated vacancy rates persist in markets such as Calgary, Winnipeg and London. In some cities, residential conversion programs have helped reduce excess supply and improve market balance.

At the same time, suburban office markets have shown resilience, with strong absorption reported in Calgary, Edmonton, Hamilton, the GTA and Ottawa, as tenants prioritize affordability, accessibility, labour availability and safety.

Neighbourhood retail pulls ahead

Retail remains one of the country’s most resilient commercial asset classes, according to the latest report with strong demand continuing for necessity-based and service-oriented space. Grocery-anchored plazas and neighbourhood retail centres in cities including Calgary, Regina, Hamilton and Halifax are reporting low vacancy rates, while limited inventory is intensifying competition among investors.

The report also points to growing momentum for walkable retail districts featuring boutiques, restaurants and local services in markets such as the GTA, Calgary and Ottawa. These community-focused shopping areas are outperforming more traditional retail formats, supported by steady foot traffic, strong tenant retention and stable rents.

Remax says several cities are also working to revitalize struggling downtown retail corridors. In Winnipeg, for example, a pilot program transformed vacant storefronts and underused public spaces into pedestrian-friendly gathering areas featuring public art, seating and lighting installations.

Industrial market holds firm 

Industrial real estate continues to anchor Canada’s commercial market, with strong demand for small-bay and flexible industrial space in several regions. Markets including Edmonton, Regina, Winnipeg, London and Ottawa continue to face tight inventory conditions, while others, such as Vancouver and Hamilton-Niagara, are still absorbing new supply.

The report also notes growing demand for industrial space tied to recreation, logistics and data infrastructure, as developers shift away from stalled condominium projects in Vancouver and the GTA.

“Transaction activity is beginning to build,” said Conrad. “While recovery remains uneven, momentum is clearly shifting toward a more active and disciplined investment environment.”

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