Commercial real estate investment slows as expert questions future of asset class

The future of commercial real estate is being debated as CRE investment slows in Canada.

Investment sales volume has declined, going from $12.3 billion in Q1 2023 to $8.5 billion in Q1 2025, a 31 per cent decline, according to a May 1 report from Altus Group Ltd.

Investment sales volume reflects sales across the country of primarily income-producing assets in commercial and multi-family real estate.

Co-author Robert Santilli, valuation advisory director with Altus, attributed the contraction to a mismatch between buyer and seller expectations. 

“That’s a consequence of bid-ask spread between what buyers want to pay for a property and what the sellers are looking for,” he said. 

Santilli

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