Commercial property in Canada - statistics & facts

Commercial property refers to any type of real estate that is used exclusively for business purposes. Investors have traditionally been attracted to commercial properties because they can generate future revenue through rental income or resale. There are four main commonly defined sectors of commercial real estate: office, retail, hotel, and industrial.

Are office vacancy rates set to rise?

Office space in some of Canada’s biggest cities is hard to find. Vancouver and Toronto had North America’s lowest vacancy rates in 2019. Across the whole country, it was forecast that office vacancy rates would average around eleven percent in 2020. However, actual figures may be higher due to the impact of COVID-19, which has changed the way that many companies operate. Office buildings are generally grouped into three classes – A, B, and C – that are dependent on factors such as location and facilities. Units that provide premium facilities are considered Class A. The net asking rent of a Class A office space in Canada is around 20 Canadian dollars per square foot.

A changing landscape for Canadian retailers

Retail spaces can range from small free-standing units to large shopping centers. At the start of 2020, it was seen as a good time for investors to buy or hold on to commercial retail property due to potential long-term gains. However, the picture suddenly changed due to the coronavirus. Sales started to move online, and traditional brick-and-mortar spaces have seen a decline in footfall due to strict lockdowns. As the eCommerce market continues to flourish, many physical retail stores have been forced to close. Some units are being repurposed as industrial properties, bought by online companies with a growing need for more warehouse space. In Toronto, less than one percent of industrial real estate units were vacant in the third quarter of 2019, which shows that demand in this sector was already strong.

Closed for business: the impact of COVID-19 on hotels

Canada’s hotel retail estate market enjoyed a period of sustained growth when the number of transactions increased by around 170 between 2009 and 2016. The market has retracted in recent years, and given the huge challenges currently facing the global tourism industry, acquisitions may further decline. Some hotels are staying afloat through government support or by using cash reserves, but with all of the uncertainty, more and more owners are looking to sell assets. Buyers might view the coronavirus crisis as an opportunity to invest in the market, purchasing real estate at discounted prices. In 2019, the average deal size for a limited-service hotel was 6.4 million Canadian dollars.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Jan 10, 2024

Key insights

Number of real estate employees in Canada
288.2k
Real estate investment in the Americas in 2018
511.6 bn USD
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Current statistics on this topic

Number of real estate employees in Canada from October 2016 to November 2022

Property Services

Number of real estate employees in Canada 2016-2022

Vacancy rates of office units in Canada from 2016 to 2023 with a forecast for 2024

Office

Vacancy rates of office space in Canada 2016-2023 and a forecast for 2024

Annual taking rent per square foot of industrial big-box real estate in Toronto, Canada from 2015 to 2023 (in Canadian dollars)

Industrial

Annual asking rent for big-box industrial real estate in Toronto, Canada 2015-2023

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Overview

4

Overview

Office

6

Office

Retail

6

Retail

Hotel

5

Hotel

Industrial

5

Industrial

Further reports

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Office real estate in the United States
Office real estate in the United States
Big-box real estate in the United States
Big-box real estate in the United States
Luxury residential real estate in North America
Luxury residential real estate in North America

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