The pent-up demand prevalent in Canada’s commercial real estate market over the past two years has turned into transaction activity, says the head of Remax Commercial.

As a result, diverse investors are driving Canada’s CRE reset, advancing the sector towards stability after years of uncertainty, Damon Conrad told Connect in an interview.

“The market has moved, I’d say, probably away from price discovery into selective execution,” said Conrad. “So, the pent-up demand that has been there, which has been high, is now starting to move. So, investors are cautious, but they’re now active again.”

Conrad made the comments following the release of the 2026 Remax Commercial Market Overview, which examined markets across the country.

Interest-rate stability is drawing investors back to Canada’s commercial real estate markets, with capital increasingly targeting strong cash-flow assets as leasing activity strengthens and fundamentals firm up despite ongoing economic uncertainty, says the report.

Remax examined first-quarter activity across 12 major Canadian markets and found improving absorption in the office sector, resilient industrial demand and continued strength in retail fundamentals.

“There’s certainly a lot of activity, and we’ve seen some of it turn into transactions,” said Conrad. “We’re hoping that more is going to come from that. [Demand] has probably still been equal to what it’s been, but now what we’re seeing is, it’s starting to move from pent-up demand to actually people being prepared to jump back into the market.

“Those that are willing to be bold are going to have opportunities, and those that are willing to move off of the pent-up demand to actual action and execution are going to have some opportunities.”

Conrad anticipates that deal size will vary according to asset class and specific markets, with 50% of the market activity comprising large deals and the other 50% involving transactions in secondary and tertiary locations.

He noted that large deals are being copleted across all asset classes.

“I think there will be opportunities in every asset class to see large deals done,” he said. “The price discovery and the delta between the bid-ask ratio is starting to close down a little bit, so now there’s more opportunities.”

The report said return-to-office mandates are supporting leasing activity in premium office space, while industrial inventory shortages persist in several markets nationwide. Retail demand has remained strong, supported by population growth and infrastructure investment, while improving financial conditions have renewed interest in well-located, income-producing assets.

Remax brokers across the country have found that all types of investors are interested in transacting, said Conrad.

“So, everybody’s back talking, at least having intentional conversations about what’s happening in the market,” he added. “Some of it might be preliminary, but certainly the activity has picked up and even the transactions have picked up. So, I think we’re going to see that there’s going to be a lot of activity and it will depend on their own motivations and activity.”

While the activity will not approach record levels, it could broach pre-pandemic thresholds, he said.

“It’s probably still off from pre-pandemic numbers,” he said. “It also depends on what market we’re talking about. Some of the strongest momentum in Canada right now is actually happening outside of the traditional gateway markets.

“Prairie and Atlantic markets are benefiting from powerful combinations of pent-up demand, affordability, infrastructure investments, and then there’s population growth all across the country. So, I think the activity will pick up, transactions will pick up. I think it’s still going to be less than pre-pandemic levels at this point.”

Remax expects Canadian and foreign investors alike to bring their capital off the sideline and put it in play.

According to Conrad, the uncertain prevalent during the past two years has subsided and poses less risk of killing deals.

The report noted that selective capital re-entry is occurring in markets such as the Greater Toronto Area, Vancouver and Edmonton, while office demand has strengthened for triple-A, amenity-rich buildings in Toronto, Vancouver and Ottawa. Older downtown office inventory in Calgary, Winnipeg and London, Ont., continues to face pressure to reposition or convert to another use.

Retail assets, particularly grocery-anchored and service-oriented properties, were identified as among the strongest-performing commercial asset classes in markets including Calgary, Regina, London, Hamilton-Niagara and Halifax, where low vacancy and strong investor demand are driving competition for available space.

Industrial markets remain mixed, with supply-constrained conditions in Regina, Winnipeg, Ottawa and Halifax supporting repurposing activity, while Vancouver and Ontario’s Hamilton-Niagara region continue to absorb newer inventory and move toward more balanced conditions.

The report also highlighted ongoing adjustments in the multi-family sector, where rising supply in Vancouver, Calgary and Halifax has increased vacancy rates, while demand for existing rental stock remains strong in Regina, Winnipeg and Saskatoon. It pointed to Toronto’s new $1.3-billion acquisition and conversion fund for unsold condominium inventory as a potential model for other major markets.

The report said Canada’s industrial real estate sector remains one of the country’s strongest-performing asset classes, supported by ongoing demand for small-bay and flexible industrial space from both owner-occupiers and investors.

“Industrial still the bell of the ball, the workhorse of Canadians,” said Conrad. “It’s softened a little bit, but the vacancy rate is small there, so it’s still in demand. Multi-family is still in demand. Retail is as exciting as it’s ever been.

“I’m always happy about retail and the way it played out after COVID. We were told that retail was dead and that we’ll never go into bricks and mortar again, and that it was all going to be online shopping and curbside pickup. Well, the reality is, we saw that that wasn’t the case, that we’re innately a very touch-and-feel, dwell-time culture. We like to get out there, we like to interact, so retail has bounced back very strongly.”

Overall, said Conrad, the market is trending in the right direction.

Remax Commercial was formed after Remax Canada President Don Kottick recruited Conrad in November 2025 from Royal LePage Commercial, which he grew into a leading national brokerage.

Conrad has been preparing to scale up Remax’s commercial business since he was hired.

He said the program will focus on promoting Remax franchisees and their activities.

“We’re looking in the windshield, and I’m only here to promote whatever we’re working on right now,” said Conrad. “We’ve made a couple tweaks. I think you’re going to find that it’s a little bit more specific to the regions that we cover, featuring and profiling a lot of the contributors from our network, and that’s what we really want to focus on: The fact that we’re making this elevated push for a new formalized commercial network, similar to some of the other industry players and what I had at my last brand.”

Remax will formally launch what he calls the company’s “truly national commercial platform” on June 1.

Pictured: Vancouver

Photo: Shutterstock