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November 6, 2024
VCREP #149: 5 Canadian Real Estate Markets to Watch in 2025 with Peter Mitham

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This week on VCREP, Cory sits down with Peter Mitham, Editor of Western Investor, to spotlight five promising Canadian real estate markets that investors should have on their radar.

With decades of experience covering commercial real estate, economic trends, and business insights, Peter shares his expert analysis on key markets across the country and what makes each one worth watching.

This episode is packed with valuable takeaways for anyone in commercial real estate. Tune in!

Top 5 Western Canadian Markets to Watch in 2025: A Commercial Real Estate Analysis

The commercial real estate landscape across Western Canada continues to evolve, presenting new opportunities for investors and developers. Based on insights from Western Investor’s latest market analysis, here are five key markets poised for growth in 2025.

1. Nanaimo, British Columbia

Nanaimo is emerging as a prime investment destination on Vancouver Island, driven by several key factors:

  • Record-breaking building permit values in both commercial and residential sectors
  • Strong multi-family property demand, with CBRE data showing increased investment activity
  • Strategic location with ferry connections to Vancouver and proximity to Port Alberni
  • Vancouver Island University presence driving research and innovation
  • Below-average investor-owned property rates, suggesting room for market entry
  • Growing population influx from both Victoria and mainland BC
  • Affordable alternative to Victoria’s increasingly expensive market

2. Chilliwack, British Columbia

The Eastern Fraser Valley’s hub is experiencing remarkable transformation:

  • Strategic location as the gateway to BC’s interior
  • Major developments including District 1881 revitalizing downtown
  • Significant industrial growth in Greendale and Artist areas
  • Key industrial developments at Lickman Road interchange
  • Notable corporate investment, including Molson Canadian’s facility
  • PCI’s Cottonwood Mall redevelopment attracting national retailers
  • Growing logistics hub potential with superior highway access
  • Competitive pricing compared to Metro Vancouver markets

3. Edmonton, Alberta

While Calgary captures headlines, Edmonton offers compelling opportunities:

  • Strong multi-family investment activity
  • Decreasing office vacancy rates from previous highs
  • Ambitious downtown redevelopment plans
  • Ice District continuing to evolve
  • Robust industrial development in peripheral areas
  • Competitive land costs attracting new development
  • Government stability providing economic foundation
  • Growing population driving residential demand

4. Saskatoon, Saskatchewan

Saskatchewan’s largest city is gaining momentum through:

  • Expanding potash industry presence, including BHP Billiton operations
  • University of Saskatchewan driving research and innovation
  • Strong agricultural sector supporting economic growth
  • Population of approximately 350,000 supporting diverse development
  • Rising farmland values driving regional wealth
  • Strategic location as a provincial distribution hub
  • Growing entertainment and cultural amenities

5. RM of Rosser, Manitoba

This strategic Manitoba municipality offers:

  • Prime location on Winnipeg’s northwestern fringe
  • Centerport Canada inland port driving industrial growth
  • Strong distribution and logistics sector development
  • High proportion of investor-owned properties
  • Strategic position serving Western Canadian markets
  • Competitive land costs attracting industrial users
  • Growing integration with Winnipeg’s industrial sector

Investment Outlook

As interest rates potentially moderate and inflation eases in 2025, these markets are positioned to benefit from:

  • Continued population growth and migration patterns
  • Strong fundamental economic drivers
  • Relative affordability compared to major urban centers
  • Strategic positions in development paths
  • Diverse economic bases supporting stable growth
  • Infrastructure investments driving accessibility
  • Growing institutional investor interest

These markets represent diverse opportunities across Western Canada, each with unique advantages and growth drivers. While not ranked in order of priority, they all demonstrate strong fundamentals and positioning for continued growth through 2025 and beyond.

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Vancouver Commercial Real Estate Podcast

For all the curious minds interested in commercial real estate investing, grab a coffee and pull up a chair because we have exclusive stories and tips from commercial real estate brokers, investors, developers, economists, urban planners, and everyone in-between. From the successes and failures to the motivations and lessons learned, the Vancouver Commercial Real Estate Podcast is your insight into commercial real estate in Vancouver, Victoria, Kelowna, and beyond.

What's the best real estate market to invest in? What are the commercial real estate asset classes and property types? Hosted by Cory Wright, founder of William Wright Commercial, and co-hosts Adam and Matt Scalena of the Vancouver Real Estate Podcast, our podcast opens the door to real estate investing for everyone from beginner investors to experienced real estate professionals. New episodes are released every Tuesday. Follow the Vancouver Commercial Real Estate Podcast on Apple Podcasts, Spotify, YouTube Music, or your favourite streaming platforms.

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This communication is not intended to cause or induce breach of an existing agency agreement. E&OE: All information contained herein is from sources deemed reliable, and have no reason to doubt its accuracy; however, no guarantee or responsibility is assumed thereof, and it shall not form any part of future contracts. Properties are submitted subject to errors and omissions and all information should be carefully verified. All measurements quoted herein are approximate.