A new report released by the NAIOP Research Foundation found that the commercial real estate (CRE) industry’s construction spending and ongoing operations in Canada generated $342.3 billion in economic activity in 2024. The report, authored by Altus Group, identified major categories of economic contributions made by commercial real estate:

Economic Activity: The commercial real estate sector’s building construction spending – across industrial, retail and entertainment, office, and institutional multifamily housing – and ongoing operations generated $342.3 billion in economic activity in Canada in 2024.

GDP: The commercial real estate sector’s building construction spending and ongoing operations generated $172.5 billion in net contribution to GDP in Canada in 2024.

Jobs: In 2024, the commercial real estate sector created and supported 1.0 million jobs in Canada, of which 365,310 are direct jobs. Many of those jobs are high-paying, high-skilled jobs in a wide array of industries.

Wages: The CRE sector’s building construction spending and ongoing operations generated $61.9 billion in labour income for workers in 2024.

According to the report, the major macroeconomic influence on the CRE industry in 2024 was the interest rate cycle that saw rates rise sharply in 2022, peak in 2023 and partially unwind throughout 2024. This cycle had an impact on transaction volume and investment decisions regarding new construction. The report also notes that lingering disruptions to the office sector continue to substantially affect the supply-and-demand balance in the market and investment decisions around new office space.

"Canada’s commercial real estate industry plays a vital role in driving economic growth, both nationally and in communities across the country,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “Each year, the sector’s development, construction, property management, and brokerage activities support billions in economic output, create thousands of jobs, and generate significant wages and income for Canadians. In addition, 2024 saw considerable investment in multifamily construction countrywide, helping to address housing shortages and expand housing supply.”

Looking ahead, Canada’s next major macroeconomic challenge will involve disruptions to the economy, and potentially the CRE sector, from the evolving trade dispute with the U.S. and, more broadly, fallout from potential disruptions to trade globally, according to the report. However, the public can expect the CRE industry to continue making a large contribution to the Canadian economy in the years ahead by investing in, developing and operating assets throughout the country.

NAIOP has chapters in Toronto, Edmonton, Calgary and Vancouver.

Download the full report at naiop.org/canadiancontributions25.

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About NAIOP

NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP comprises some 21,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit naiop.org.

The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization to support the work of individuals and organizations engaged in real estate development, investment and operations. The Foundation’s core purpose is to provide information about how real properties, especially office, industrial and mixed-use properties, impact and benefit communities throughout North America. The initial funding for the Research Foundation was underwritten by NAIOP and its Founding Governors with an endowment established to support future research. For more information, visit naiop.org/foundation.

About Altus Group

Altus connects data, analytics, applications and expertise to deliver the intelligence necessary to drive optimal commercial real estate (CRE) performance. The industry’s top leaders rely on our market-leading solutions and expertise to power performance and mitigate risk. Our global team of ~2,000 experts are making a lasting impact on an industry undergoing unprecedented change—helping shape the cities where we live, work and build thriving communities. For more information about Altus (TSX: AIF) please visit www.altusgroup.com.

NAIOP Contacts:

Brielle Scott, NAIOP director of marketing and communications
703-904-7100, ext. 169
scott@naiop.org

Kathryn Hamilton, NAIOP vice president for marketing and communications
703-904-7100, ext. 165
hamilton@naiop.org