For advisors tracking the markets where client capital is deployed, other regional signals are worth noting. Calgary leads the national outlook, with real GDP growth forecast at 3.4 per cent in 2027, according to Signal49, and an economy described by interviewees as more diversified than in previous cycles.
Edmonton is forecast to see growth accelerate to 3.0 per cent in 2027 with a strong small- and mid-bay industrial story. Halifax recorded the highest year-over-year in-place rent growth in Canada at 5.7 per cent in the second quarter of 2026, according to Yardi. Ottawa, meanwhile, faces pressure from federal spending cuts but its industrial vacancy held at 2.5 per cent in the second quarter, according to Colliers.
Advisors following Canada’s emergence as a standout real estate destination for institutional capital will also note the growing role of data centres in markets such as Quebec City, where approximately 1.3 million square feet of industrial space were under construction in the second quarter of 2026, with data centres accounting for the bulk of activity, according to Colliers.
Capital conditions improve, but equity remains the binding constraint
Debt is available and lenders are active, but funding is flowing selectively toward strong sponsors, income-producing assets and highly bankable projects. The more pressing constraint heading into a 2027 refinancing wave is equity, not debt. Structured capital – including preferred equity and mezzanine debt – is increasingly bridging the gap between senior debt and common equity, the report notes.
Artificial intelligence is also reshaping how real estate companies operate assets. Survey respondents identified AI as the industry’s top disruptor, which signals a longer-term shift in how real estate businesses are managed and valued. For advisors whose clients hold real estate through funds or REITs, operational efficiency gains from AI may increasingly feature in how asset managers differentiate returns.