Canada Commercial Real Estate Market Size (2024 - 2029)

Canada Commercial Real Estate Market Analysis

The Canada Commercial Real Estate Market size is estimated at USD 77.09 billion in 2024, and is expected to reach USD 111.12 billion by 2029, growing at a CAGR of 7.59% during the forecast period (2024-2029).

Commercial real estate in Canada has witnessed tremendous growth and strong performance over the past thirty years. Industry participants have enjoyed outstanding possibilities for investment, asset development, service development, and property management.

However, the COVID-19 pandemic altered the real estate market's environment in Canada. The global cascade of corporate closures, restricted borders, and reduced spending habits affected investors, landlords, and tenants. They monitored the effects of COVID-19 and dynamically adjusted their operations and backup plans to support their operations and personnel on a daily basis.

In actuality, there is a direct link between population, employment, and real estate performance growth. The need for space grows along with a company's growth and expansion, and so does the cost of real estate to accommodate the addition of new personnel, goods, or services. Over the past thirty years, demand and space absorption have largely stayed positive in the office and industrial sectors.

Other elements that contribute to the expanding productivity gap include Canadian businesses' propensity to avoid competition, which is demonstrated by their comparatively low export intensity in comparison to other nations. Canada invests less in ICT than other developed nations in the mining, oil and gas, manufacturing (a proxy for industrial space), and banking (a proxy for office space) industries, three key contributors to our economy.

Several American firms, including Costco, Home Depot, Walmart, Apple, and others, have opened up shop in Canada. In order to stay competitive, Canadian merchants have been compelled to invest in their business models. The impressive legacy Additionally sold to American investors, Hudson's Bay Company is now gaining market share as a result of the increased investment and rivalry. As a result, this industry's production and retail spending have both increased significantly.

As technology improves the "path to purchase" for customers and the retail experience, store measurements continue to change. Mobile price monitoring is posing a competitive threat by minimizing the need for store visits and in-store transactions. In reaction to this trend, every store is uniquely realigning its portfolios. For instance, Staples is modifying their business strategy to emphasize e-commerce more. To guarantee that their Canadian footprint is optimized, other retailers are also reviewing their shop strategies.

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.