CRE pros confident in market stability despite headwinds, says Avison Young Canada
Momentum is building in Canada’s commercial real estate (CRE) market, with industry experts expressing confidence that activity will remain stable or even increase in the second half of 2025, according to Avison Young’s 2025 mid-year outlook.
However, the impact of tariffs remains a central consideration in decision-making, especially among industrial and project management professionals.
In a survey of more than 150 Avison Young experts across Canada, 93% said they expect CRE activity to remain stable (48%) or increase (45%) in the second half of the year. Tariff negotiations, however, continue to weigh heavily on industry sentiment. Among industrial respondents, 67% warned their market could lose out due to tariffs, a stark contrast to Avison Young’s US survey, where only 27% of industrial experts felt the same.
“While tariffs remain a key consideration in decision-making, we are seeing adaptation across sectors, from office transformations and retail resurgence to steady multifamily demand as investor activity ticks upward,” Avison Young Canada president Mark Fieder said.
“Our industry is approaching today’s landscape with a mix of resilience and strategic recalibration, and it is clear to me from our survey results that Avison Young experts are feeling cautious optimism as they navigate clients through evolving economic conditions.”
Developers are expected to pause new projects in the latter half of the year for a variety of reasons, including costs and tariffs (34%), feasibility (24%), and overall risk (21%).
Investor activity
Investor appetite is growing, particularly in markets that offer long-term value and stability. According to the survey, 88% of Avison Young experts anticipate investor appetite will be somewhat higher (44%) or significantly higher (44%) in the second half of 2025.
In Vancouver, grocery-anchored retail properties are seeing renewed investor interest, while multifamily assets are especially active in Edmonton, Calgary, and Montreal. Toronto’s mid-market investors are targeting discounted assets and receivership sales, and both suburban office and retail transactions are rising in Southwestern Ontario and Ottawa.
Read next: Vancouver commercial real estate market adjusts to volatile economy
“Avison Young experts across sectors and service lines offer data-driven insights that enhance our offering to strategically guide clients through some of their most critical business and real estate decisions,” said Marie-France Benoit, principal and director of market intelligence at Avison Young Canada.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
