Avison Young’s experts optimistic about commercial real estate activity this year
Ninety-three percent of Canadian Avison Young experts are confident in stable or increased market activity in commercial real estate (CRE) in the second half of 2025.
The CRE services firm surveyed 150 of its Canada-based professionals in its 2025 Mid-Year Outlook report.
Of the 93% expressing market confidence, 48% said CRE activity would remain stable while 45% said it would increase in the last half of 2025.
Despite the optimism of Avison Young’s real estate professionals, tariffs still inject a level of uncertainty into the situation, especially for manufacturing. Two-thirds (67%) of industrial respondents in Canada said their market stood to lose because of tariffs.
In contrast, US-based Avison Young professionals were much less worried, with only 27% of industrial respondents saying their market stood to lose because of tariffs.
In the area of project management, Canadian Avison Young experts believe developers will pause in H2 2025 for reasons including costs and tariffs (34%), overall feasibility (24%), and risk (21%).
“Our industry is approaching today’s landscape with a mix of resilience and strategic recalibration, and it is clear to me from our survey results that Avison Young experts are feeling cautious optimism as they navigate clients through evolving economic conditions,” said Mark Fieder, principal and president, Avison Young Canada.
The overwhelming majority of respondents (88%) think investors will have a stronger appetite in the second half, with activity picking up in markets that present long-term value.
Multifamily assets are seeing the strongest investment activity in Edmonton, Calgary, and Montreal, while Vancouver is seeing an investment rebound in grocery-anchored retail.
In Toronto, mid-market investors are snapping up discounted assets and receivership sales.
Avison Young says the Toronto office sector is in tentative recovery as major employers increasingly return employees to the office. Longer-term leases are also re-emerging as tenants focus on high-end amenities in a “flight to quality.”
