Canada

Like the country itself, Canada’s real estate story is a mosaic of regional influences. The overall market cooled in the first half of 2025, with investment down roughly 24 percent, and Vancouver and Montréal feeling the chill most. High interest rates and global uncertainty continue to weigh on business decisions. Yet amid the contraction, bright spots are emerging. Toronto remains the country’s bellwether, especially for workplace and headquarters trends where demand for top-tier office space has outstripped supply. Retail is another growth sector with healthcare and aviation showing positive signs. Meanwhile, housing has hit a wall, prompting a new wave of government investment, modular experimentation, and creative conversions. For investors and developers, Canada offers both stability and experimentation in a market that’s still in motion.
What’s Next

A split office market reshapes downtowns.

Canada’s financial sector has mandated office returns, leaving prime towers in Toronto nearly full and vacancy rates under 3%. Meanwhile, Class B and C assets sit idle, sparking increasing interest in office-to-residential conversions. Calgary leads North America in conversions with an innovative incentive-based framework that has become a national model for success.

Housing hits reset as modular and adaptive reuse move mainstream.

Housing has long been Canada’s real estate anchor, but financial pressures have stalled development. The government has responded with multiple housing funds that incentivize conversions and modular construction, giving the sector a necessary jolt, and opening new opportunities for design innovation.

Healthcare and aviation reach new heights.

Multi-billion-dollar hospitals and airport expansions transform Canada’s project landscape. The Toronto Pearson airport master plan alone tops $12 billion, with spin-off projects in the billions. In healthcare, mega-hospital projects are underway across the country. Outpatient and long term care facilities accelerate to accommodate an aging population.

New frontiers take shape in the form of data centers and defense.

Canada’s next growth wave is driven by data and defense. Data centers expand around Toronto, Montréal, and Calgary as demand for AI and cloud services surges, while rising defense investment fuels secure campuses and research hubs.
Notable Projects
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TELUS Health Care Centre, Calgary, Canada
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Holt Renfrew Flagship, Toronto, Canada
A tall building in a city.
Central Park House, Burnaby, Canada
A group of people in a room.
CIBC Headquarters, Toronto, Ontario, Canada
Insights from the Gensler Research Institute

Toronto and Vancouver Residents Want More Affordability to Match a High Quality of Life

Toronto and Vancouver residents report high satisfaction with livability, recreation, and neighborhood amenities, but affordability issues — particularly housing and cost of living — create a sharp contrast between the experience of urban life and the cost of accessing it.
How satisfied are you with the following aspects of your city?
  • Opportunities for sports and recreation
  • Availability of neighborhood amenities
  • General cost of living
  • Housing affordability
Source: Gensler City Pulse 2025
Notable Areas of Expertise
Offices
Thought Leadership
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Blog

Age-Welcoming Cities: Designing for an Era of Longevity

The challenge of a rapidly aging population also presents an opportunity: to reimagine how we plan our cities.
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Blog

The Future of Real Estate Metrics: Human Connection

The places that thrive in the years ahead will be designed to build relationships, inspire belonging, and foster togetherness.
A group of people in a large building.
Blog

How Aviation Is Evolving for the Leisure Traveler

Airports are in the midst of a profound transformation. Confronted with aging infrastructure, rapidly advancing technology, and an unprecedented surge in leisure travel, these once utilitarian spaces are being reimagined as destinations in their own right.
A person standing in a room.
Blog

Unlocking Value in Class A High-Rises: The Strategic Advantage of Spec Suites

In Class A commercial towers, spec suites are becoming a go-to strategy for converting vacancy into value.
A group of people on the rooftop of the converted office to residential building at 1St. Clair West.
In The Media

How Building Conversions Can Address Toronto’s 20% Office Vacancy Rate

The Globe and Mail explored converting vacant offices into housing, with insights from Gensler Building Transformation Leader Steven Paynter on scoring potential candidates for conversion based on factors like location, building size, and ease of dividing floors.
The Globe and Mail
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Blog

The Top 10 Cities People Don’t Want to Leave

Gensler’s 2025 City Pulse survey reveals the top cities where people not only move to, but also stay long-term.
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Blog

The Future of Work Is Human: Designing for Culture and Experience

The challenge in front of us is to design places that empower creativity, build belonging, and support people and teams to do their best work — whatever that looks like.
A city with tall buildings.
Blog

The 20 Cities Attracting the Most Newcomers

New city residents often leave within five years. To remain successful, these magnetic cities must also engage and retain their new populations.
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Research

City Pulse 2025

Gensler surveyed 33,000 people across 65 cities to uncover what makes a city magnetic — how it attracts new residents and keeps them wanting to stay.
A couple of women sitting in chairs.
Blog

How Summer FOMO Is Shaping the Canadian Workplace

Our latest research offers some insights into why a desire for flexibility, variety, and seasonal adaptability is influencing the workplace in Canada.
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Blog

How the AI Gold Rush Is Influencing Data Center Design Trends

Gensler’s Critical Facilities leaders discuss how the AI boom is influencing the shape, speed, and operations of data center design.
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Research

Global Workplace Survey 2025

Gensler’s Global Workplace Survey 2025 reveals the importance of in-person work and insights on how workplaces can be better designed to support all forms of work for individuals and teams.
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Blog

The Biggest Challenge to Office Conversions Isn’t Design — It’s the Status Quo

Office-to-residential conversions have the ability to unlock affordable housing and revitalize cities, but only if the market can move beyond the status quo.
A group of women sitting in chairs.
Blog

How the Rise in Digital and Home Health Will Transform Healthcare

New technologies and digital tools leveraging AI are starting to redefine how we manage our personal healthcare needs — and it starts at home.
A person lying on a bed.
Blog

Realizing the Value of Artificial Intelligence When Planning Tomorrow’s Healthcare Facilities

The true value of AI lies not just in its ability to revolutionize devices and treatments but in its power to drive ROI through smarter, more adaptable healthcare environments.
Blog

Avoiding Fear-Based Decision-Making to Foster Positive In-Store Retail Experiences

How deliberate design decisions can boost brand recognition and connect with customers.
A group of people in a room with tables and chairs.
Blog

How Immersive Food and Beverage Experiences Are Redefining Hospitality

Food and beverage spaces have unique potential as experiential destinations that authentically convene community in a way that is familiar, universal, and transformative.
A group of people riding bikes.
Blog

Conversions for Healthcare:
10 Takeaways for the Future

As healthcare systems shift to a new model of distributed care, adaptive reuse of older buildings will be an important strategy to sustainably achieve their goals.
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Conversions+™ by Gensler
Determine if an office building is a candidate for residential conversion.
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