Lenders are expecting and planning to provide more capital for Canadian commercial real estate ventures in 2026, pointing to increased debt liquidity and a more competitive financing environment, says CBRE.

According to the 2026 Canadian Real Estate Lenders’ Report, 81% of lenders anticipate growing their origination volumes this year, with most targeting increases of about 10% over 2025 levels. Notably, more than a quarter intend to deploy 20% or more additional capital into real estate lending.

The survey, conducted between Dec. 10, 2025, and Jan. 16, 2026, gathered responses from 47 domestic and foreign lenders representing more than $200 billion in commercial real estate loans under management.

“Lenders are back in the market with conviction across most asset classes, most notably office,” says CBRE Senior Vice-president Joshua Sonshine. “Origination volumes are rising, balance sheets are opening up, and we’re seeing a clear intention from lenders to deploy more capital this year. Even with renewed momentum, underwriting discipline isn’t going anywhere. There are fewer sure things in this market, and lenders are taking a measured, fundamentals-first approach across all asset classes.”

Competition is also expected to intensify, with 68% of lenders planning to actively or very actively bid on deals in 2026. CBRE says increased competition could tighten spreads and lower borrowing costs, as the share of lenders planning to very actively pursue transactions reaches its highest level in four years.

Market preferences are shifting geographically. Vancouver has overtaken Toronto as lenders’ top market of choice for the first time in a decade, reflecting strong property fundamentals and geographic constraints that concentrate tenant demand. After years of focusing on the Greater Toronto Area, lenders may be seeking to diversify their loan books.

Calgary climbed to third place in lender rankings, supported by strong migration trends and an energy sector viewed as relatively insulated from U.S. tariffs. Edmonton also improved its standing, rising to sixth. By contrast, industry-specific tariffs on steel and autos dampened appetite for markets such as Hamilton and London.

By asset class, multi-family remains the top target, with lenders planning to increase budgets more than in any other sector, signalling a long-term commitment despite short-term market recalibration. Retail is also gaining favour, as 55% of lenders look to expand their exposure.

Office-lending intentions have rebounded sharply, marking the first time in six surveys that lenders on balance are looking to increase, rather than decrease, their office loan budgets. However, many respondents flagged the obsolescence of older, lower-class office properties as a significant challenge, citing the capital required to modernize or repurpose assets to attract quality tenants.

Industrial lending intentions fell to their lowest level in 11 surveys amid weaker fundamentals, although concern about the sector remains limited. Land was the only asset class where no lenders expressed interest in increasing budgets.

“The main challenge to the lending environment is economic uncertainty, but lenders are starting to realize that uncertainty is the new normal,” notes CBRE Senior Vice-president Jessica Harland. “Bidding is more active, credit spreads are tightening, and lenders now have a clearer read on how to price risk across sectors. That visibility is translating into a more competitive and ultimately healthier lending environment.”

CBRE is a global commercial real estate services and investment firm with operations in more than 100 countries, providing advisory, property management, project management and real estate investment services.

Photo: CBRE