CRE Industry Leaders Offer Observations on Market

Connect is holding its Summer 2025 Leadership Series in which top executives from Canadian commercial real estate firms provide insights on the state of the market. Today, Jonathan Turnbull, managing director and head of Canada for Harrison Street; and Diana Hoang, owner and managing director of Spear Realty, share their views on market conditions and other factors affecting Canadian commercial real estate.

Which asset classes do you expect to shine, and why?

Diana Hoang: “So far we’re seeing, and it’s interesting to hear, and it’s good to know that multi-family is still being highlighted. As of right now, industrial is stable. It’s not as rich as in the prior two years, but it’s still stable. There are still groups wanting to occupy, and that’s why it’s still an asset that investors look at. Retail is still trading. There are groups that are looking at office again, but the highlight would be probably multi-family.

What potential investment barriers could people be overlooking?
“There ere continues to be a series of withholding taxes that negatively differentiate Canadian real estate investments from US opportunities for many global investors. Those taxes may
have some negative impact on the willingness of foreign investors to invest in Canadian real estate. The desire to invest in Canada exists, but the after-tax returns may prove less attractive than other jurisdictions.

How do you think tariffs will impact investment during the second half of 2025 and beyond?

Diana Hoang: “The tariff [situation] has definitely put a damper on [CRE investment] for users. If you are a landlord looking to invest in it, the rates are a lot lower. [As to] whether or not the [bid-ask] pricing gap has come down as it gets smaller, it’s getting there. We haven’t see it come down, as of yet, a whole lot. So, we still need some time for that, for the gap to become closer.”