Prepared by LeSolace Corporation December 2025

As we head into 2026, the Canadian commercial real estate and financing landscape shows marked optimism after a period of caution. Lower interest rates, economic stabilization, and strong sectoral demand are creating favorable conditions for developers, investors, and borrowers in multi-unit residential, industrial, and mixed-use projects.

Key Sector Trends for 2026

• Strong Optimism Across the Market: According to Avison Young’s 2026 Canadian Outlook survey, 97% of commercial real estate professionals expect activity to remain stable or increase, with 64% anticipating growth—a significant improvement from mid-2025 sentiments. Multi-family and industrial sectors continue to lead performance, driven by population growth, in-migration, and ongoing demand for purpose-built rentals and logistics space.
• Multi-Family Resilience: Purpose-built rentals remain a defensive asset class, attracting diverse capital (pensions, family offices, foreign investors). PwC’s Emerging Trends in Real Estate 2026 highlights growth in rentals, including student and seniors’ housing, fueled by demographic shifts and policy support.
• Industrial Strength: Industrial properties, particularly small-bay assets and data centers, are resilient amid e-commerce and manufacturing trends. Availability rates are normalizing, but demand in key clusters (e.g., automotive, advanced manufacturing) supports steady performance.
• Emerging Opportunities: Grocery-anchored retail, self-storage (benefiting from densification), and climate-compatible projects are gaining traction.

Rate Stability and Its Impacts

• The Bank of Canada’s policy rate is currently at 2.25%, with economists widely expecting it to hold steady through much of 2026. This stability provides predictability after years of volatility, supporting borrower confidence and investment decisions.
• Commercial mortgage rates are expected to remain in the 4-5% range, with potential modest easing if inflation stays near 2%. Fixed rates tied to bond yields may see slight upward pressure but overall stabilization.
• Lower borrowing costs compared to recent peaks encourage refinances, acquisitions, and new construction—particularly in high-demand sectors.

Tips for Maximizing Leverage on Multi-Unit and Industrial Deals

1. Leverage CMHC MLI Select: Post-July 2025 updates, MLI Select offers competitive advantages with risk-based premiums, up to 95% LTV, and extended amortizations (up to 50 years for qualifying projects). Focus on affordability, energy efficiency, and accessibility criteria to secure 20-30% premium discounts—ideal for multi-unit rentals and sustainable industrial builds.
2. Target High-Performers: Prioritize projects in leading markets like Calgary (top-ranked for prospects), Toronto, and Edmonton. Industrial small-bay and multi-family rentals offer strong cash flow and lower risk.
3. Mitigate Risks: With potential trade uncertainties, build in contingencies for tariffs. Partner with experienced brokers for tailored financing and fast approvals.
4. Explore Private Capital: Traditional bank debt is competitive, but private REITs, family offices, and debt funds are filling gaps for creative structures.
5. Act Early: With improving sentiment and stable rates, 2026 is poised for increased transaction volume—position your deals now for optimal terms.

At LeSolace Corporation, we’re specialists in commercial and CMHC-insured financing across Ontario, Alberta, and Manitoba. We’re here to help developers and investors navigate these opportunities and secure the best financing for your projects.

Contact us today to discuss your pipeline: Shaun McCandless | Mortgage Broker 1-888-622-2671 

This guide is for informational purposes only and based on current market insights as of December 2025. Consult a professional for personalized advice.