Lower and more stable interest rates have improved the ability to underwrite income-producing assets, while global trade risk, slower population growth and construction-cost friction continue to discipline new development. The strongest read-through from Q1 2026 is not a broad-based boom; it is a bifurcated market where capital is returning to high-conviction income, quality buildings and scarce well-located product.

The strongest through-line across asset classes is not broad-based acceleration; it is quality, certainty of income and locational defensibility. Investors and tenants are favouring well-located, functional assets with durable demand drivers while remaining cautious on repositioning risk, construction cost exposure and under-leased space.

Calgary’s market remained resilient and opportunity-driven, led by strong multi-family fundamentals and steady industrial, retail, hotel, and medical demand, while office recovery continued to be selective and highly asset-specific.

The Greater Montreal commercial real estate market began 2026 with a clear split between assets that can defend income and assets that still need price discovery. Rental housing remains structurally relevant, but new completions and softer demand from some temporary-resident groups have eased vacancy

The central story is not broad-based acceleration; it is segmentation. Federal workplace policy is reshaping office and downtown retail demand, industrial availability remains structurally tight, rental housing is normalizing after new supply and softer temporary-resident inflows, and healthcare infrastructure is creating one of the region's clearest long-term demand anchors.

After the 2022-2024 escalation cycle, many costs have normalized into a higher baseline. Developers are no longer budgeting for universal monthly shocks, but contingency discipline remains critical because material pricing, labour availability and procurement conditions continue to vary materially by city, building type and construction schedule.

Cost escalation moderated, but the market remained difficult to underwrite because labour availability, tariff uncertainty, supply-chain reliability, building-code changes and financing conditions continued to shape project viability. For owners and developers, the implication is clear: budget confidence now depends less on a single $/sf number and more on disciplined scope definition, scenario testing, trade validation and escalation governance.