Industrial, retail and multi-family lead activity in major markets across the country

TORONTO, Oct. 27, 2026 /CNW/ -- Commercial real estate investment gained momentum in key Canadian markets during the first half of 2026, with industrial, retail and multi-family asset classes attracting considerable capital despite ongoing economic uncertainty, elevated construction costs and financing challenges, according to data and insights supplied by REMAX brokers and agents and featured in the REMAX Canada Fall 2026 Commercial Real Estate Report.

"Capital is flowing, but investors are trying to make every dollar count," says 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. Elsewhere, we are hearing that rising availability and slower absorption have put pressure on rents and values, creating a very different set of market conditions."

REMAX Canada examined commercial trends and developments in 12 major Canadian markets between January 1 and June 30 and compared them to the same period in 2025. Improving fundamentals (increasing absorption and decreasing availability) were reported as follows, broken down by segment:

• Industrial: 91.6 per cent of markets analyzed (11/12)
• Retail: 83.3 per cent of markets analyzed (10/12)
• Multi-family: 58.3 per cent of markets analyzed (7/12)
• Office: 41.6 per cent of markets analyzed (5/12)
• Land development: 16.6 per cent of markets (2/12)
• Farmland (Saskatchewan): Significant upswing in the number of farms listed for sale, while land values continue to climb.

Among the report's notable findings:

• Brick-and-mortar retail is experiencing a resurgence, with demand for neighbourhood plazas and grocery-anchored centres contributing to vacancy below one per cent in some Greater Vancouver suburbs.
• GTA multi-family investment rose more than 240 per cent year(EQNX::nobreakspace)¹over year in the first half of 2026, as investors targeted established rental properties despite softer rental conditions in other markets.
• Defence and technology investment are creating new sources of commercial real estate demand, particularly in markets such as Halifax, Edmonton and Winnipeg.

Smaller spaces and established properties lead demand

Neighbourhood retail is experiencing a resurgence, with grocery-anchored centres and shopping plazas attracting demand from medical, health, wellness, beauty and food-service operators. In some Greater Vancouver suburbs, retail vacancy has fallen below one per cent amid limited new construction. The shift toward smaller commercial footprints also extends beyond retail, as businesses seek compact industrial and office spaces. High replacement costs are encouraging buyers to acquire and retrofit existing buildings rather than pursue new development. Multi-family continued to attract investment, but rental conditions diverged as new supply increased choice and softened rents in markets including Kelowna, London and Ottawa. Office demand favoured modern, well-located buildings, while older properties faced persistent vacancies and costly upgrades. Land development remained one of the weakest segments as construction costs, financing requirements and lengthy timelines weighed on feasibility.

"Supply has become increasingly constrained in some of the country's key commercial markets," says 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, depending on local demand and development activity. If confidence improves, limited suitable space could constrain transactions in some markets; the timing and extent of any change remain uncertain."

Regional Market Insights

REMAX Broker/Owners and agents identified distinct local drivers across the 12 markets, with regional summaries also capturing more recent developments beyond the first-half comparison period.

Western Canada

Greater Vancouver's retail sector stood out, with vacancy below three per cent downtown and less than one per cent in some suburban neighbourhoods. Industrial availability tightened even as sale prices softened. Kelowna remained more subdued, with new apartment supply weighing on rental conditions and higher costs slowing development.

Edmonton and Calgary continued to attract industrial investment, with buyers favouring existing buildings over new construction. Emerging interest in AI and data-centre infrastructure is also creating potential opportunities for industrial land and related investment in Edmonton. Calgary also saw improving office conditions as tenants upgraded space and conversions removed obsolete inventory, while Edmonton's suburban offices outperformed its downtown core.

Limited industrial inventory supported demand in Saskatoon and Regina, while multi-family properties continued to attract capital. Saskatchewan farmland listings reached their highest level in five years, yet 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, according to Saskatchewan MLS data.

Investment dollars continue to be drawn to the overall stability of Winnipeg's commercial market, contributing to already tight industrial and multi-family asset classes in the first half of the year, despite some lingering challenges in the city's trucking industry.

Ontario

Greater Toronto Area commercial investment reached nearly $10.2 billion in the first half of 2026, up 41 per cent(EQNX::nobreakspace)²(EQNX::nobreakspace)year over year. Multi-family investment rose more than 240 per cent, while premium office space attracted tenants. Older properties and development land faced greater challenges.

Ottawa recorded strong industrial and retail leasing demand, but limited inventory constrained sales. Federal return-to-office mandates supported renewed office-sector confidence, while new rental apartment supply increased tenant incentives. In London, smaller industrial units and established retail plazas remained sought after, while larger industrial buildings, offices and a growing rental supply faced slower absorption.

Atlantic Canada

Halifax's commercial market benefited from defence and logistics investment, including two defence-related acquisitions announced in March totaling $142.5 million. The acquisitions highlight the growing role of defence spending in demand for industrial land and infrastructure. Office availability stood at eight per cent(EQNX::nobreakspace)³ in Q2, the lowest rate in Canada, while new apartment supply helped ease rental-market tightness.

In Newfoundland and Labrador, limited industrial and multi-family inventory constrained activity despite investor demand. Fifteen multi-family and industrial transactions over $1 million closed on MLS between January 1 and August 31 of this year, up from nine one year ago, with multi-family accounting for some of the province's largest deals. Energy, mining and infrastructure investment supported demand, while new industrial construction remained scarce.

Looking Ahead

Looking ahead to 2027, REMAX Broker/Owners and agents anticipate a gradual and uneven recovery in Canada's commercial real estate market. While demand for established, income-producing properties is expected to remain strong, limited new construction could create further supply challenges in markets where demand continues to grow.

About the Report

The REMAX Canada Fall 2026 Commercial Real Estate Report includes data and insights supplied by REMAX brokerages and analyzed by Point Blank Communications. REMAX Broker/Owners and agents are surveyed on market activity and local developments. Each REMAX office is independently owned and operated. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real REMAX Group's company-specific growth trends.

About the REMAX Network

As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of Real REMAX Group (NASDAQ: REAX) with more than 145,000 agents in nearly 8,500 offices and a presence in more than 120 countries and territories. REMAX Canada refers to REMAX Canada, Inc., which is a subsidiary of RE/MAX, LLC. Nobody in the world sells more real estate than REMAX, as measured by residential transaction sides. REMAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. REMAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network(EQNX::registered) and other charities. To learn more about REMAX, to search home listings or find an agent in your community, please visit(EQNX::nobreakspace)remax.ca. For the latest news from REMAX(EQNX::nobreakspace)Canada, please visit blog.remax.ca.(EQNX::nobreakspace)

Forward-Looking Statements

Some of the statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the stock repurchase authorization. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "potential", "project", and similar expressions or future or conditional verbs such as "could", "may", "should", "will" and "would". These statements inherently involve numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, Real REMAX Group expresses an expectation or belief as to future results or events, it is based on Real REMAX Group's current plans and expectations, expressed in good faith and believed to have a reasonable basis. However, Real REMAX Group cannot give any assurance that any such expectation or belief as to future results will be achieved or accomplished. Significant risk factors that may cause such a difference include, but are not limited to, slowdowns in real estate markets, economic and industry downturns; the inability to successfully integrate the companies; Real REMAX Group's ability to attract and retain agents and franchisees; Real REMAX Group's inability to successfully launch new products and features; Real REMAX Group's inability to scale while improving operating leverage, or inability to successfully execute its strategies; possible unfavorable results in legal proceedings; changes in laws, regulations or the regulatory environment affecting our business; disruption to our technology or cybersecurity incidents; and other risk factors detailed from time to time in our reports filed with the SEC, as well as in legacy Real's and legacy REMAX's reports filed with the SEC, including legacy Real's annual report on Form 40-F, reports on Form 6-K and other documents filed with the SEC, and legacy REMAX's annual report on Form 10-K, quarterly reports on Form 10-Q, reports on Form 8-K and other documents filed with the SEC, copies of which are available at www.sec.gov, and legacy Real's reports filed with Canadian securities regulators, including legacy Real's audited annual financial statements and annual management's discussion and analysis for the financial year ended December 31, 2025, Annual Information Form dated March 4, 2026 and quarterly financial statements and quarterly management's discussion and analysis for the period ended June 30, 2026, copies of which are available under legacy Real's SEDAR+ profile at www.sedarplus.ca.

¹(EQNX::nobreakspace)Source: Altus Group's Altus Data Studio
²(EQNX::nobreakspace)Source: Altus Group's Altus Data Studio
³(EQNX::nobreakspace)Source: Altus Group's Altus Data Studio

SOURCE REMAX Canada

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