Industrial, according to PwC, is still one of Canada’s “resilient and emerging asset classes,” with a tilt to small bay assets – referring to smaller, multi-tenant commercial spaces within larger buildings – likely in the year ahead.
And in its 2026 Global Investor Outlook, Colliers noted that Canada remains one of the most attractive commercial real estate markets globally, thanks in no small part to the fact that industrial and logistics assets continue to perform well even despite moderating demand.
It earmarked urban infill and small- to mid-bay facilities as key priorities for investors rounding out 2025 and looking forward to this year.
Competing factors to determine extent of 2026 industrial growth
The sector hasn’t been immune to wider geopolitical headwinds like those that have emerged again in the past week, with fresh questions arising about what the future holds for Canada’s economy in the face of a bellicose Trump administration in the US.
Construction activity and completions in the industrial space reached close to record highs and then demand fell in 2025 – partly because of political events south of the border, Morguard’s senior director, research Keith Reading (pictured top) told Canadian Mortgage Professional.