As a commercial property manager in Canada for over 20 years, I’ve seen the market fluctuate greatly at times. But in recent years, there are a few sectors that continue to see impressive, and sometimes unexpected, growth. Based on current trends and forecasts, I wanted to analyze the Commercial Property Management spaces that I think will really boom in Canada in 2024.

When looking at commercial properties, most people immediately think of office buildings and retail spaces. But the sectors that I think will outperform in 2024 are actually industrial spaces like warehouses, medical office buildings, and flexible/coworking office spaces. Here’s a deeper look at why I believe these niche sectors are poised to explode:

Warehousing and Logistics Facilities

One of the biggest shifts in Canadian commercial real estate has been the massive growth of industrial facilities specially designed for distribution, fulfillment and logistics. With the continued rise of e-commerce and online shopping, demand for these warehouses is surging across Canada.

In fact, CBRE research predicts that logistics real estate could see up to $190 billion in investment in 2023. This demand is being driven by large retailers like Amazon rapidly expanding their distribution footprints. For example, when I was touring a new warehouse development last month in Ontario, the builder already had 3 companies bidding for the space, before it was even completed!

The key markets I’m seeing the most activity in for these logistics facilities are Toronto, Montreal, Vancouver and Calgary. Anywhere in Canada with major ports, airports and highway access is primed for more warehousing. For investors and landlords, these facilities provide great stable income with long-term leases from credit tenants.

Medical Office Buildings

Another sector that I expect to perform very well in 2024 is medical office buildings (MOBs) in Canada. As the Canadian population ages, demand for healthcare services continues rising. And with that comes greater need for purpose-built MOBs that house doctor’s offices, clinical services, surgery centers and outpatient care facilities.

Recent reports show that over $10 billion was invested in MOBs in Canada in the last year. And new development is booming, with millions of square feet of medical office space currently under construction across the country. I drove by a newly built four-story MOB last week in Vancouver that had a “Coming Soon” banner for a cardiology practice – these facilities are popping up rapidly.

Some of the most active regions I’m seeing for MOB development include Toronto, Montreal, Calgary and other rapidly growing metro areas with key hospital systems nearby. The tenant demand is certainly there, as medical providers need modern facilities designed specifically for healthcare needs.

Key Takeaways for Canadian Property Managers and Investors

While the Canadian commercial real estate market always has some uncertainty, I believe these sectors provide relatively stable opportunities for the foreseeable future. The key is understanding the demographic and industry shifts driving tenant demand.

As a property manager, I’m advising my investor clients to consider adding some exposure to these sectors in 2024. Finding the right markets and properties to invest in takes research and boots on the ground. But those willing to tap into these growth industries now could reap significant rewards in the coming years.

No commercial real estate sector is recession-proof. But by carefully analyzing data and trends, Canadian property managers can identify pockets of demand. Being strategic with acquisitions and developments will hopefully pay off as these sectors continue accelerating into 2024 and beyond.