Industrial and multi-family properties will comprise Canadian commercial real estate’s best bets in 2024, says a new report from PwC and the Urban Land Institute.

The two assets are leading the way for the second straight year, while grocery-anchored retail properties round out the top three. Retail was a surprising addition to the best-bets list this year after community shopping centres were ranked high for investment prospects, said PwC and ULI.

Office spaces continue to fall out of favour with investors.

“This trend has been further exacerbated because of the shift to hybrid work, which has had a profound impact on utilization of corporate real estate, including the increase in suburbanization,” said PwC and ULI in a news release.

The multi-family sector offers some home amid the deepening housing affordability crisis, say the two organizations. PwC and ULI credit innovative industry approaches and government initiatives, such as Ottawa’s decision in September to scrap the G.S.T. on purpose-built rental apartment projects, for generating interest in the asset class.

As Connect reported, a new Morguard report says that Canada’s commercial real estate market remains steady.