Demand for office and industrial space continues growing in Canada
That view aligns with what commercial mortgage professionals have been hearing from their clients. Damon Conrad, vice president of REMAX Canada Commercial, told Canadian Mortgage Professional earlier this year that “the strongest office environments today are those that offer quality space, accessibility, and amenities,” and that older assets face mounting pressure to reposition or restructure.
That bifurcation matters for brokers and commercial lenders underwriting office assets. As premium office fundamentals strengthen across the country’s major markets, older Class B and C buildings face a different trajectory, one that demands closer scrutiny on loan-to-value ratios and tenancy profiles.
Industrial market tightens as new supply slows
On the industrial side, the picture is broadly constructive. Colliers Canada’s Q2 2026 data shows positive net absorption in all but one market nationally, and average net rents held near $14.72 per square foot, declining just three cents quarter-over-quarter, which Colliers described as a possible indicator that asking rates may be approaching their floor.
Calgary’s industrial market recorded the strongest quarterly performance, with net absorption exceeding 1.5 million square feet in the Greater Calgary Area, reducing vacancy to 3.0%, its lowest level since the e-commerce-driven surge of 2022.
Edmonton’s industrial rents recovered to $11.86 per square foot after a brief period of softening, while Saskatoon’s industrial vacancy tightened further to 2.5%, with rental rates rising 3.6% quarter-over-quarter.
