Three surprising factors are fuelling Canada’s commercial real estate sector rebound from its pandemic woes: remote work, racquet sports and artificial intelligence.

Office space demand has particularly grown for “triple-A, amenity-rich space” in Toronto, Vancouver and Ottawa, while older buildings in Calgary, London, Ont., and Winnipeg are facing pressure to convert, according to a real estate report by Re/Max Canada .

“While uncertainty shaped much of 2025, we’re now seeing a clear shift in investor behaviour,” Damon Conrad, vice-president of Re/Max Canada Commercial, said in a release. “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 COVID-19 pandemic fuelled a trend of remote work for office employees, which has slowly shifted to hybrid working arrangements and full-time, in-office work, depending on the position.

National office vacancy rates peaked at 14.9 per cent in the middle of last year, but have since come steadily down to 13.6 per cent, according to a report by Colliers Macaulay Nicolls Inc.

“While return-to-office policies vary by both market and industry, their cumulative impact is being felt nationwide,” the report said. “Leasing activity has generally become more concentrated in downtown nodes.”

But the retail space is showing the biggest demand, with Re/Max saying low grocery vacancy rates in many cities have increased competition for available options.

Re/Max also said the increased popularity of racquet sports has impacted the commercial real estate industry.

“Amid industrial inventory shortages, an uptick in demand for recreational space has also impacted the Canadian commercial real estate market, with the popularity of pickleball, padel, cricket, rock climbing and other such activities on the rise,” the report said.

“Churches have also shown growing interest in industrial products in several markets where zoning permits, with the steel-frame and concrete-flooring warehouse structure most conducive to retrofitting.”

In a changing development for commercial real estate, Re/Max said more stalled condo construction projects are shifting toward industrial facilities to meet the demand for AI data centres.

“Investors are only prepared to sit on the sidelines for so long,” Conrad said. “As financing conditions ease and pricing expectations align, capital is re-entering the market with greater conviction. Transaction activity is beginning to build, and while recovery remains uneven, momentum is clearly shifting toward a more active and disciplined investment environment.”

Sign up here to get Posthaste delivered straight to your inbox.


Gas prices are not only hurting us, the pain at the pump is also being felt south of the border.

Gas has reached US$6 per gallon in the U.S., prompting U.S. President Donald Trump to propose a temporary gas tax holiday, which will save drivers about 18.4 cents U.S. per gallon.

This comes as Republicans are trying to court voters in advance of the midterm elections in November.

Despite the relief for citizens, the changes would cost the U.S. government a whopping $3.5 billion per month, according to federal estimates.

The initiative still needs Congressional approval.

Read more here.

  • 1:30 p.m.: Bank of Canada releases its summary of deliberations
  • 1:30 p.m.: Bank of Canada external deputy governor Michelle Alexopoulos speaks in Ottawa
  • Today’s Data: U.S. producer price index for April
  • Earnings: Cisco Systems Inc., Manulife Financial Corp., Allied Gold Corp., Hydro One Ltd., Yellow Pages Ltd.

  • Canada’s mortgage debt hits record high as delinquency rate creeps up
  • Dunkin’ Donuts to open hundreds of locations across Canada
  • Tax season may have ended, but you better start planning for next year or you’ll lose money
  • BMO to sell truck, trailer financing businesses to U.S. firm in a bid to sharpen its focus

With tax season over and done with for many Canadians, it may already be time to start planning for next year. Setting aside monthly RRSP and TFSA investments and keeping track of receipts of tax significance can make the tax process much easier next year. Read more here.

Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

  • Posthaste: Canadians falling behind on home weather protection
  • Posthaste: Young Canadians are once again leaving Atlantic Canada

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here