Industrial, retail and multi-family assets drew the most capital nationally in the first half of 2026, despite elevated financing costs
Commercial real estate investment is gathering momentum across Canada, with industrial, multi-family and neighbourhood retail emerging as the asset classes drawing the most sustained investor interest in the first half of 2026.
However, high construction costs and elevated financing requirements continued to dampen enthusiasm for new development, according to the REMAX Canada Fall 2026 Commercial Real Estate Report, released October 27, 2026.
It surveyed brokers and agents across 12 major Canadian markets to compare activity between January 1 and June 30, 2026, against the same period in 2025. The results reveal a commercial property landscape in recovery, but an uneven one, shaped by market-specific conditions and diverging supply dynamics.
"Capital is flowing, but investors are trying to make every dollar count," said Kristie Kimnach, Executive Director of REMAX Commercial. "We've seen considerable investment in established, income-producing properties this year, particularly in markets where demand remains strong. The challenge in some of these markets seems to have been finding enough quality product to meet investor demand."
Where fundamentals are improving
According to REMAX Canada, improving fundamentals - defined as increasing absorption and decreasing availability - were recorded in a large share of markets surveyed.
Industrial led the way, with improving conditions in approximately 92 per cent of markets analyzed (11 of 12). Retail followed at approximately 83 per cent (10 of 12), with multi-family improving in approximately 58 per cent of markets (7 of 12). Office conditions were recovering in roughly 42 per cent of markets, while land development remained the weakest segment at only 17 per cent.
The Greater Toronto Area stood out nationally. Total commercial investment volume reached nearly $10.2 billion in the first half of 2026, a 41 per cent year-over-year increase, according to data from Altus Group's Altus Data Studio.
Multi-family was the standout performer within the GTA, with investment rising more than 240 per cent year over year as investors targeted established rental properties - a trend consistent with broader national interest in income-producing residential assets.
For advisors looking at how this fits into client portfolios, Wealth Professional's coverage of how private real estate is increasingly being considered for income-oriented allocations provides useful context on the structural demand driving that interest.
Neighbourhood retail was another bright spot. Grocery-anchored shopping centres and community plazas attracted demand from medical, wellness, beauty and food-service tenants and in some Greater Vancouver suburbs, retail vacancy fell below one per cent amid limited new construction.
Regional picture varies considerably
Western Canadian markets demonstrated contrasting dynamics. Edmonton and Calgary saw continued industrial investment, with buyers favouring the acquisition and retrofit of existing buildings over new-build projects, given the high cost of ground-up construction.
Emerging demand for artificial intelligence infrastructure and data-centre facilities is also creating new interest in industrial land in Edmonton, according to the REMAX Canada report. Calgary's office sector showed improvement as tenants upgraded premises and obsolete buildings were converted to other uses.
Saskatchewan's farmland market moved in a different direction. According to Saskatchewan MLS data cited by REMAX Canada, the median sale price for farms of at least 80 acres rose approximately 11 per cent year over year to $2,612 per acre over the 12 months ending in September 2026 - a notable uptick at a time when farmland listings reached their highest volume in five years.
In Atlantic Canada, Halifax's commercial sector was buoyed by defence and logistics spending, including two defence-related acquisitions announced in March 2026 totalling $142.5 million. The city reported office availability of approximately eight per cent in the second quarter of 2026, according to Altus Data Studio - the lowest rate in Canada.
For advisors following the growing role of defence investment in Atlantic Canadian real estate, Wealth Professional's coverage of investors entering the Canadian global real estate space offers a broader lens on where capital is repositioning nationally.
Newfoundland and Labrador, meanwhile, saw 15 multi-family and industrial transactions over $1 million close on MLS between January 1 and August 31, 2026, up from nine transactions in the same period a year earlier, per the REMAX Canada report. Energy, mining and infrastructure investment continued to underpin activity there.
Supply constraints and what comes next
The report's authors and the agents surveyed were consistent on one theme: supply is the binding constraint across many Canadian commercial markets, and high construction and financing costs are prolonging that imbalance.
"Supply has become increasingly constrained in some of the country's key commercial markets," said Don Kottick, President of REMAX Canada. "Demand for smaller industrial units and neighbourhood retail space has remained strong in many markets, yet high construction and financing costs continue to limit new development. Higher bond yields and economic uncertainty could prolong that imbalance."
That dynamic — strong occupier demand met with limited new supply — is precisely the environment that has driven many wealth managers and their clients toward income-producing assets in recent years. As the REMAX Canada Fall 2026 Commercial Real Estate Report notes, advisors guiding clients with real estate exposure should pay close attention to local market conditions heading into 2027: the recovery is real but highly regional, and the gap between prime and secondary assets is widening.
Looking ahead, REMAX Canada brokers and agents anticipate a gradual and uneven recovery in 2027. Demand for established, income-producing properties is expected to hold, but limited new construction may amplify supply challenges in markets where occupier demand continues to grow.
