At the same time, investors are focusing on properties with dependable cash flow and long-term income potential.
“While uncertainty shaped much of 2025, we’re now seeing a clear shift in investor behaviour,” says Damon Conrad, Vice President, RE/MAX Canada Commercial. “Capital remains cautious and focused on preservation, but as financial conditions stabilize, deferred demand is beginning to re-emerge. Investors are highly selective, but they are increasingly prepared to act where income stability and long-term value are evident.”
The report suggests that a lengthy period of price discovery may be easing. With borrowing costs stabilizing and sellers and buyers narrowing expectations, early signs of cap rate compression are emerging in selected sectors, helping to unlock transactions.
Major centres
Investors are targeting major centres such as the Greater Toronto Area, Vancouver and Edmonton, where improving conditions are drawing capital back into the market. Prairie provinces and Atlantic Canada continue to stand out, supported by stronger fundamentals and comparatively attractive opportunities.
Office demand has become increasingly polarized. Premium, amenity-rich buildings in cities including Toronto, Vancouver and Ottawa are attracting tenants, while aging downtown properties in Calgary, Winnipeg and London face mounting pressure to reposition or convert to other uses.