CRE This Week in Canada - What's impacting the CRE market?
October 1, 2025 - Canada commercial real estate market insights, indicators, and notable transactions
Week of October 1, 2025
Welcome to the latest edition of CRE This Week, curated by Altus Group’s Canada research team.
Our team has handpicked new and noteworthy market indicators, articles, and significant industry transactions that are impacting Canada's commercial real estate sector. We understand that your time is valuable, so we're excited to deliver research that helps you stay informed and saves you some time each Monday morning.
FEATURED TrANSACTIONS
Canada property transactions
Greater Toronto Area: Industrial
5949-5969 Ambler Drive, Mississauga
$18,400,000
$455 per sq. ft.
Greater Vancouver Area: Multifamily
8770 Granville Street, Vancouver
$12,200,000
$254,167 per unit
Brokers: Mark Goodman, Ian Brackett, Megan Johal (Goodman Commercial Inc.)
Greater Edmonton Area: Industrial
12516 & 12740 184 Street NW, Edmonton
$36,500,000
$365 per sq. ft.
Greater Golden Horseshoe: Industrial
60 Goddard Crescent, Cambridge
$4,800,000
$370 per sq. ft.
Greater Toronto Area transactions
Sector | Municipality | Address | Price | Unit price | Parameter | Brokers |
|---|---|---|---|---|---|---|
Industrial | Scarborough | 55-61 Milne Avenue & 67 Butterworth Avenue | $24,150,000 | $181 | per sq. ft. | Jonathan Yuan. Richard Chilcott, Mark Stainer, Ankit Jindal (Avison Young) |
Office | Mississauga | 7025 Langer Drive | $14,450,000 | $225 | per sq. ft. | Bryce Gibson, Matt Picken, Vienna Loo (Jones Lang LaSalle) |
Industrial | MIssissauga | 3223 Orlando Drive | $12,600,000 | $372 | per sq. ft. | Ben Williams, Eric Margo, Jason Bailey (Colliers); Herdeek Shah (Executive Real Estate Services Ltd.) |
Greater Vancouver Area transactions
Sector | Municipality | Address | Price | Unit price | Parameter | Brokers |
|---|---|---|---|---|---|---|
Industrial | Abbotsford | 31388 Peardonville Road | $8,150,000 | $377 | per sq. ft. | Boe Iravani & Matt Syberg-Olsen (Marcus & Millichap) |
Industrial | Abbotsford | 2080 Carpenter Street | $8,000,000 | $432 | per sq. ft. | |
Office | Delta | 1777 56th Street, Unit 600 | $2,600,000 | $885 | per sq. ft. |
Greater Edmonton Area transactions
Sector | Municipality | Address | Price | Unit price | Parameter | Brokers |
|---|---|---|---|---|---|---|
Industrial | Edmonton | 3804 74 Avenue NW | $1,900,000 | $137 | per sq. ft. | Vincenzo Caputo (NAI Commercial) |
Multifamily | Edmonton | 12945 101 Street NW | $1,900,000 | $126,667 | per unit | |
Multifamily | Edmonton | 9740 149 Street NW | $1,895,000 | $126,333 | per unit |
Greater Golden Horseshoe transactions
Sector | Municipality | Address | Price | Unit price | Parameter | Brokers |
|---|---|---|---|---|---|---|
Industrial | Hamilton | 60 Lancing Drive | $4,000,000 | $253 | per sq. ft. | |
Retail | Hamilton | 568 Upper Wellington Street | $2,000,000 | $526 | per sq. ft. | |
Multifamily | Kitchener | 170 Weber Street East | $1,740,000 | $248,571 | per unit |
ECONOMIC PRINT
Canada commercial real estate market indicators
Construction labour market remains tight, and job vacancies have normalized
Canada’s construction sector remains a vital driver of economic activity, even as housing starts moderate and pre-construction sales weaken in key markets. Inflation-adjusted construction spending rose 5% in July year-over-year, led by an 8% gain in residential building. Non-residential performance was mixed, with commercial and industrial activity down, offset by stronger institutional and government spending, while engineering investment edged higher. Labour market conditions remain tight: construction unemployment dropped below 5% in August, and job vacancies have normalized to about 40,000 - roughly pre-pandemic norms. This balance underscores a resilient, though evolving, sector navigating both softer demand in housing and sustained public-sector investment.
Left – Unemployment rate in the Canadian construction industry (percent); Right – Job vacancies in the Canadian construction industry, (000s persons)
Office recovery takes hold as availability declines and tenants return
Canada’s office market showed further signs of recovery in Q3, with the national availability rate falling 160 basis points year-over-year to 16.4%. The drop is being fueled by three main factors: tenants reclaiming space they once put up for sublease, a sharp slowdown in new construction, and sustained demand for premium Class AAA towers.
Regional performance highlights the uneven pace of recovery:
Halifax leads the country with the tightest availability at 7.8%
Vancouver (12.7%) and Ottawa (13.3%) also remain well below the national average
Calgary, despite the highest availability at 20.5%, posted a notable 280-basis-point year-over-year improvement, a sign its incentive programs are reshaping the market
In contrast, Quebec City recorded a rise to 14.6%, with tenants showing a clear preference for more affordable Class B space (11.7%) over Class A (18.2%)
Office availability rate (Q3 2024 vs. Q2 2025 vs Q3 2025)
Office vacancy rates flattening across Canadian metros
This “flight to quality” has left little new supply coming to market, and while the very top tier remains in demand, downtown Class A vacancy rates are flattening. With options narrowing, more tenants are starting to consider older buildings, a shift that could prompt owners to modernize and reposition assets to stay competitive.
Downtown office direct Class A vacancy rates flattening
INSIGHTS Spotlight
Catch the latest research and insights from Altus
CRE valuation trends – Residential insights
Multifamily remains one of the most reliable asset classes for North America and Europe, but there are nuances to the story across regions. Europe is leading gains on the back of strong cash flows, the US is holding steady with investor demand despite supply pressures, while Canada is showing early cooling as vacancy rises. Our Global Valuation Advisory team’s latest analysis offers forward-looking signals needed to assess risk, identify opportunity, and refine capital deployment strategies.
Canadian office market update – Q3 2025
Canada’s office sector continues to face headwinds, with elevated vacancy and changes to tenant demand creating uncertainty for owners and investors. Our latest quarterly update goes deeper, breaking down absorption, leasing, and investment flows across key metros. The insights reveal where risks remain highest and where early signs of stabilization could translate into strategic opportunities.
GTA missing middle housing: Costs, demand and financing challenges
“Missing middle” housing in the GTA (walk-ups, infill, townhomes) is increasingly in demand from families and downsizers, yet many projects are struggling to get off the ground. Financing gaps, regulatory delays, and elevated construction costs are creating barriers even where market appetite exists. This article from Altus Group’s Economic Strategist, Peter Norman, explores the forces impacting project feasibility and provides context on the challenges developers and investors face in bringing these housing types to market.
IMPORTANT DATES
Altus on the road
Peter Norman
Vice President and Economic Strategist, Altus Group
Session:
Canadian Market Pulse
Canadian Property Tax Association: 59th Annual National Workshop
October 6, 2025
10:15 am - 11:15 am ET
Raymond Wong
Vice President, Data Solutions, Altus Group
Session:
The Big Beautiful Bill’s impact on CRE and development
The CCIM Institute 2025 Fall Forum
October 6, 2025
9:30 am - 10:30 pm PT
Raymond Wong
Vice President, Data Solutions, Altus Group
Session:
Investment overview of Ottawa’s office, retail, industrial and multi-unit residential markets
Informa: Ottawa Real Estate Forum
October 9, 2025
8:45 am - 9:20 pm ET
Stuart Boyce
Senior Director, Development Advisory, Altus Group
Session:
Building through barriers: a discussion on Calgary’s development landscape
Informa: Calgary Real Estate Forum
October 29, 2025
2:00 am - 2:45 pm ET
About our research team
Ray Wong
Vice President, Data Solutions
Altus Group
Ray is the Vice President, Data Solutions, Client Delivery team with the Altus Group and has over 30 years of market research experience. He works closely with both internal and external clients to provide timely information and industry insights about the Canadian market and at a global scale. Ray is regularly asked to speak at various industry events and answer media outlet requests.
Peter Norman
Vice President and Economic Strategist
Altus Group
Peter Norman is a recognized leader in commercial real estate economics and strategic market insights. As vice president and economic strategist, Norman drives thought leadership initiatives, economic forecasting, and innovative solutions to industry challenges, reinforcing Altus Group’s position as a market leader. With 30 years of experience as a prominent economist, Norman combines a deep understanding of economic principles with a talent for communicating complex concepts clearly and persuasively.
Edward Jegg
Research Manager
Altus Group
Ray is the Vice President, Data Solutions, Client Delivery team with the Altus Group and has over 30 years of market research experience. He works closely with both internal and external clients to provide timely information and industry insights about the Canadian market and at a global scale. Ray is regularly asked to speak at various industry events and answer media outlet requests.
Jennifer Nhieu
Senior Research Analyst, Data Solutions
Altus Group
Jennifer Nhieu is a Senior Research Analyst, Data Solutions with Altus Group, where she specializes in providing timely, data-driven insights into the Canadian market. Leveraging her background in commercial real estate and geographic information science, Jennifer is a key contributor to Altus Group’s quarterly research insights. She transforms complex data sets into clear, actionable intelligence, helping stakeholders make informed decisions.
About the Data Solutions team
Behind every update in our newsletter is the work of our Data Solutions team, a group dedicated to keeping you informed on commercial real estate activity across Canada. From Vancouver to Toronto (and everywhere in between), they track transactions, visit properties, and add the local context that numbers alone can’t capture. Their work goes beyond deals, by providing insights into new home developments and sales trends, as well as detailed office and industrial inventory data across key markets, from Montreal and Calgary to Winnipeg, Quebec City, and Atlantic Canada.
Disclaimer: The opinions expressed in this newsletter are solely those of the authors and are not endorsed by Altus Group Limited, its affiliates and its related entities (collectively “Altus Group”). This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice or services of Altus Group. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy, completeness or reliability of the information contained in this publication, or the suitability of the information for a particular purpose. To the extent permitted by law, Altus Group does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. The distribution of this publication to you does not create, extend or revive a client relationship between Altus Group and you or any other person or entity. This publication, or any part thereof, may not be reproduced or distributed in any form for any purpose without the express written consent of Altus Group.
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Sep 9, 2025