What Does the Commercial Market Look Like in 2025? (Canada & U.S. Outlook)
As we move deeper into 2025, the commercial real estate landscape in Canada and the United States is evolving — shaped by post-pandemic recovery, shifting market demands, and new investment patterns.
So, what can investors, developers, and lenders expect this year?
Canada: Urban Density Meets Housing Demand
Canada’s commercial market continues to feel the push and pull of housing needs, economic uncertainty, and regulatory shifts.
Key trends:
- Multi-family housing remains strong: Population growth, especially through immigration, is fueling demand in urban centers like Toronto, Vancouver, and Montreal.
- Office space rethinks itself: Hybrid work has reshaped demand, pushing for more flexible, amenity-rich spaces — or conversion to residential in some cases.
- Industrial leads the pack: Logistics, warehousing, and e-commerce-related properties continue to attract investor attention.
The challenge? Rising borrowing costs and stricter financing criteria make it essential to partner with experienced firms that can navigate approvals and structure deals smartly.
United States: Regional Shifts and New Opportunities
In the U.S., the story varies by region.
Key trends:
- Sun Belt surge: States like Texas, Florida, and Arizona continue to outperform, with population inflows and corporate relocations driving demand for residential and commercial space.
- Office market caution: While some prime urban markets hold steady, secondary cities are seeing a softening in office demand, pushing a shift toward mixed-use or flexible spaces.
- Retail’s selective comeback: Quality matters — top-tier locations and experiential retail are thriving, while weaker locations continue to struggle.
- Industrial remains robust: Like in Canada, logistics and last-mile delivery assets stay in high demand.
How The Coterie Group Can Help
At The Coterie Group, we’re connected to a vast network of private lenders, family offices, institutional investors, and local developers across Canada and the U.S.
We help clients:
- Access construction, land, and project loans even in tight credit conditions
- Structure JV partnerships to unlock large opportunities
- Align capital with projects in sectors that are positioned for growth
- Navigate cross-border investment and financing opportunities
In 2025, smart strategy and trusted partnerships make the difference between standing still and scaling up. Let’s make sure you’re on the right side of that line.
