Data Centres, Office Assets Among Hidden Gems
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, Mark Fieder, head of Avison Young’s Canadian business, and Jonathan Peretz, JLL’s head of Canadian leasing, offer their views on hidden investment gems.
Which property types may be hidden gems?
Mark Fieder: “Office is the hidden gem right now. I find that there were more asset sales in the last 12 months, the capital is less restrained and the leasing fundamentals are getting better. We’ve had very good prices that make sense. … We’re see a lot strategies develop around it, and I do believe that by 2026, we’re going to see a lot of leaders that move and buy office.”
Jonathan Peretz: “I believe that data centres and mixed-use developments are poised to be significant hidden gems in the Canadian real estate market over the next few years. Our JLL research supports the compelling growth and investment potential these asset classes offer. Data centres are experiencing substantial growth driven by the continuous advancement of artificial intelligence, alongside the increasing demand for cloud computing and digital services. This fuels a strong need for data processing and storage. While challenges like power availability exist, these market dynamics present notable investment opportunities for those who can navigate the specialized nature of this asset class.
“Similarly, I firmly believe mixed-use developments are fundamentally reshaping our urban landscapes to meet evolving consumer preferences and work patterns. These projects, which seamlessly integrate residential, retail, office, experiential retail, sports and entertainment and often other uses, are becoming increasingly attractive investment opportunities. This aligns perfectly with the desire for convenient, walkable live-work-play environments, which urban residents increasingly prioritize.
“Both data centers and mixed-use developments represent forward-looking investment strategies that capitalize on fundamental shifts in technology, demographics, and urban planning.”