Economic Impacts of Commercial Real Estate in Canada, 2025 Edition

The commercial real estate (CRE) sector plays an important role in the Canadian economy. The development, construction and operation of CRE sector buildings directly and indirectly create thousands of jobs and add substantial value to Canada’s gross domestic product (GDP). Besides its direct contribution to the economy, the CRE sector provides working space for employees across a wide range of sectors of the economy as well as places for Canadians to live, shop, eat and play.

In 2024, the CRE sector’s construction spending and ongoing operations generated:

• $342.3 billion of economic activity in Canada
• $172.5 billion in net contribution to GDP in Canada¹
• About 1 million jobs in Canada, including 365,300 direct jobs, many of which were high-paying, high-skilled jobs in a wide array of industries
• $61.9 billion in labour income for workers

The development of land, commercial and industrial spaces in local communities in a timely manner is critical to economic development. Canada’s economic strength stems from economic development at the local level.

The quality of available workspaces and the array of amenities offered across a community, including attractive shopping centres, restaurants and entertainment venues, are integral to its ability to retain talent and attract highly skilled workers. Office buildings define the central business districts of cities across Canada, and retail, entertainment and hospitality clusters provide core centres of activity for many communities. 

Canada’s CRE sector provides high-quality workspaces for some of the world’s leading sectors, including life sciences, financial services, advanced manufacturing, information technology, food distribution and retail. Although CRE is developed within municipal zoning and planning frameworks, entrepreneurial CRE firms take the initiative and risk to invest in and construct new buildings that offer many community benefits.