[Guelph, Ontario – MONTH DAY, 2025]
What can investors expect from the Canadian commercial real estate market for the remainder of 2025 and into 2026? What asset classes are expected to outperform? How will foreign investment in Canada evolve?
Wayne Byrd, Chief Financial Officer, Skyline, shares insights on the prospects, opportunities, and emerging trends in Canadian commercial real estate investment, as part of Connect Canada CRE’s 2025 Summer Leadership Series.
Connect Canada CRE: What is your outlook for Canadian CRE investment over the rest of 2025 and into 2026?
WB: The outlook varies by asset class, but overall, we remain confident in the long-term fundamentals of the segments in which Skyline operates, namely multifamily residential, industrial, and essential retail.
On the multifamily side, there’s no question that certain segments of the market, such as urban condos, are experiencing oversupply in some metropolitan areas. However, supply and demand dynamics remain fluid and are dependent on local economies, land zoning regulations, and population growth. And while homeownership affordability is improving, the affordability gap remains too great to materially affect the rental market. Overall, I see a rental market slowly returning to equilibrium, with pricing stabilizing after several years of outsized growth driven by population surges and constrained housing supply.
Read full response on ConnectCRE.ca
Connect Canada CRE: Which asset classes do you expect to shine and why?
WB: I believe essential retail is well-positioned to shine in the foreseeable future.
Despite some lingering misconceptions—often tying the asset class to enclosed malls or legacy retailers like Hudson’s Bay Co.—essential retail continues to deliver strong operating results. The pandemic reaffirmed the enduring value of brick-and-mortar essential retail shopping for everyday goods, particularly in categories such as grocery, health care, and quick-service dining. A lasting impact from that period was a significant slowdown in new retail construction, leaving the industry still playing catch-up. This has created a favourable supply-demand dynamic, where tenant appetite for quality space exceeds available inventory and supports strong rental growth and high occupancy across the sector.
Read full response on ConnectCRE.ca
What’s your outlook for foreign investment in Canada within the next six to 12 months?
WB: I’m quite optimistic about Canada’s prospects of attracting foreign capital for the foreseeable future, particularly in income-generating multi-residential, industrial, and retail sectors.
Canada continues to be viewed globally as a resilient market and remains a primary destination to deploy capital. We see this in the 2025 Kearney FDI Confidence Index, where Canada was named the second most attractive country for foreign direct investment. The country’s political stability, strong legal framework, and reliable returns from core real estate assets are key factors driving that foreign interest.