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Re/Max report forecasts commercial real estate upswing later this year

A new report released by Re/Max Canada predicts some Canadian cities could see an upswing in demand for commercial real estate in the next six months.

The company says despite evolving conditions in the sector since the pandemic, it sees resilience across the 12 commercial real estate markets it reviewed in the first quarter of 2023.

Industrial real estate is leading the way, with rising property values in B.C. and Ontario causing a spillover of demand to cities such as Edmonton, Calgary, Regina, Saskatoon, London-St. Thomas, Halifax and St. John’s.

But Re/Max says the office sector continues to struggle across the country amid the increase of hybrid work models, which has prompted the repurposing of some office space to residential use in major cities.

The report indicates land sales remain “solid” despite continued high interest rates and construction costs.

Meanwhile, it says retail is “surprisingly robust” despite the growth of online sales in recent years.