The RE/MAX 2023 Commercial Real Estate Report examined 12 commercial real estate markets across Canada in the first quarter of 2023 and found that industrial real estate continued to outperform almost every other asset class, with all markets reporting strong sales and lease activity. With both property and lease values climbing, investors and end users in British Columbia and Ontario have extended their search perimeter for distribution and warehousing facilities to neighbouring provinces with more affordable pricing.

A spillover of demand from these provinces and key markets have bolstered sales of industrial product in Edmonton, Calgary, Regina, Saskatoon, London-St. Thomas, Halifax and St. John’s.

Why are these markets so attractive?

Alberta’s provincial government is willing to incentivize business movement into the province, with the Alberta Investment and Growth Fund. Furthermore, municipal government are a willing partner in terms of building their cities. Finally, there are the “inland ports” in Edmonton and Calgary.

While demand has softened from peak levels reported in 2022 in most Canadian markets, industrial real estate inventory levels remain extraordinarily low, given the headwinds the industry has encountered.