Top 3 Trends Influencing the Canadian Commercial Real Estate Industry Right Now
3.5 min read
Canada's commercial real estate industry is constantly evolving, driven by a range of factors such as economic growth, demographic changes, and technological advancements. As we move further into 2023, it is essential to keep pace with these changes. Below are three trends that are currently shaping the industry.
1. Demand for Flexible Office Space
One of Canada's most prominent trends in the commercial real estate market is the demand for flexible office spaces. The past two years have disrupted traditional office models, and businesses seek more flexible arrangements for remote work and collaboration. This has created an opportunity for companies that offer flexible office space solutions, such as co-working spaces, serviced offices, and virtual offices.
Co-working spaces, in particular, have become increasingly popular in Canada, as they offer businesses the flexibility to rent office space on a short-term basis without committing to a long-term lease. As a result, landlords are increasingly offering flexible leases to attract tenants, changing how commercial real estate is being leased and managed.
2. Sustainability and Energy Efficiency
Another major trend in Canada's CRE industry is the focus on sustainability and energy efficiency. Environmental concerns are becoming increasingly important for businesses, and many are seeking environmentally friendly and energy-efficient properties. This drives demand for buildings with green roofs, solar panels, and energy-efficient heating and cooling systems.
Landlords and developers are responding to this trend by investing in green buildings and retrofitting older properties to make them more sustainable. The federal government has also implemented programs such as the Energy Efficiency Financing Program and the Low Carbon Economy Fund to incentivize energy efficiency.
3. Technology and Innovation
The third major trend driving Canada's CRE industry is technology and innovation. The pandemic has accelerated technology adoption in the industry, as businesses have had to find new ways to work remotely and collaborate. As a result, there is a growing demand for properties with advanced technology infrastructure, such as high-speed internet and smart building systems. Landlords and developers are responding by investing in new technologies, such as automation and artificial intelligence, to make buildings more efficient and cost-effective.
Blockchain technology is also being explored as a way to streamline real estate transactions and increase transparency in the industry. This has the potential to revolutionize how real estate is bought and sold and could significantly impact Canada's commercial real estate market in the coming years.
The commercial real estate industry in Canada is driven by various factors, from changing work styles to environmental concerns and technological innovation. As the industry evolves, these trends will likely continue to shape the market and create new opportunities for landlords, developers, and tenants alike.
Reference
PricewaterhouseCoopers. (n.d.). Emerging trends in real estate® 2023. PwC. Retrieved March 13, 2023, from https://www.pwc.com/ca/en/industries/real-estate/emerging-trends-in-real-estate.html
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