Canada Logistics Real Estate Market

Canada Logistics Real Estate Market, valued at USD 19 billion, is growing due to e-commerce demand, urbanization, and tech advancements. Dominant segments: distribution centers and e-commerce users in key cities like Toronto and Vancouver.

Region:North America

Author(s):Geetanshi

Product Code:KRAA0237

Pages:89

Published On:August 2025

About the Report

Base Year 2024

Canada Logistics Real Estate Market Overview

  • The Canada Logistics Real Estate Market is valued at USD 19 billion, based on a five-year historical analysis. This growth is primarily driven by the surge in e-commerce, increased demand for efficient supply chain solutions, and the expansion of distribution networks across the country. The logistics sector has seen significant investments in infrastructure, including new industrial developments and modernization of existing assets, enhancing the overall market landscape .
  • Key cities dominating the market include Toronto, Vancouver, and Montreal. Toronto stands out due to its strategic location and robust transportation infrastructure, while Vancouver benefits from its proximity to the Pacific Rim and major port facilities. Montreal serves as a critical hub for logistics and distribution, connecting North America with international markets, thus driving demand for logistics real estate .
  • Recent regulatory initiatives, such as continued enhancements under the National Trade Corridors Fund and government investments in freight and intermodal infrastructure, have focused on improving the efficiency of freight transportation. These efforts aim to enhance intermodal connectivity and reduce bottlenecks in supply chains, thereby fostering growth in the logistics real estate sector .
Canada Logistics Real Estate Market Size

Canada Logistics Real Estate Market Segmentation

By Type:The logistics real estate market is segmented into Distribution Centers, Fulfillment Centers, Cold Storage Facilities, Cross-Dock Facilities, Urban Logistics Hubs, and Others. Distribution Centers are currently leading the market, driven by the need for efficient storage and rapid distribution to meet consumer expectations for fast delivery. The rise of e-commerce has significantly influenced consumer behavior, increasing demand for strategically located distribution centers. Fulfillment Centers are also gaining traction, catering specifically to e-commerce businesses with tailored solutions for order processing and shipping .

Canada Logistics Real Estate Market segmentation by Type.

By End-User:The end-user segmentation of the logistics real estate market includes Retail, E-commerce, Manufacturing, Wholesale, Third-Party Logistics (3PL) Providers, and Others. The E-commerce sector is the dominant end-user, driven by the rapid growth of online shopping and the need for efficient logistics solutions to meet consumer expectations for fast delivery. Retail also plays a significant role, as traditional brick-and-mortar stores adapt to the changing landscape by integrating logistics capabilities to support their online sales channels. Demand from 3PL providers is increasing as businesses seek to outsource logistics operations for greater flexibility and cost efficiency .

Canada Logistics Real Estate Market segmentation by End-User.

Canada Logistics Real Estate Market Competitive Landscape

The Canada Logistics Real Estate Market is characterized by a dynamic mix of regional and international players. Leading participants such as Prologis, Brookfield Properties, Oxford Properties, Dream Industrial REIT, Granite REIT, Pure Industrial (PIRET), Triovest, GWL Realty Advisors, BentallGreenOak, Summit Industrial Income REIT, Slate Asset Management, Blackstone (Canada Industrial Portfolio), Colliers International, CBRE Group, and JLL (Jones Lang LaSalle) contribute to innovation, geographic expansion, and service delivery in this space.

Company

Establishment Year

Headquarters

Portfolio Size (Total Logistics/Industrial Sq Ft)

Geographic Coverage (Number of Provinces/Markets)

Occupancy Rate (%)

Average Lease Term (Years)

Net Operating Income (NOI)

Revenue Growth Rate (%)

Prologis

1983

San Francisco, CA

Brookfield Properties

1899

Toronto, ON

Oxford Properties

1960

Toronto, ON

Dream Industrial REIT

2012

Toronto, ON

Granite REIT

2003

Toronto, ON

Canada Logistics Real Estate Market Industry Analysis

Growth Drivers

  • E-commerce Growth:The Canadian e-commerce sector is projected to reach CAD 54 billion in future, driven by an 8–10% annual increase in online retail sales. This surge necessitates expanded logistics facilities, particularly in urban areas, to accommodate the growing demand for efficient distribution networks. The rise in consumer preference for online shopping is compelling logistics providers to invest in real estate that supports rapid order fulfillment and inventory management, thereby enhancing overall supply chain efficiency.
  • Urbanization Trends:Canada’s urban population is expected to exceed 40 million in future, representing over 80% of the total population. This urbanization drives demand for logistics real estate, as businesses seek proximity to consumers for faster delivery times. The concentration of population in metropolitan areas increases the need for strategically located warehouses and distribution centers, facilitating last-mile delivery solutions that are essential for meeting consumer expectations in urban settings.
  • Technological Advancements:The logistics sector in Canada is increasingly adopting advanced technologies, with investments in automation projected to reach CAD 1.5 billion in future. Technologies such as AI, IoT, and robotics are enhancing operational efficiencies and reducing labor costs. These advancements are prompting logistics companies to seek modern facilities equipped with the latest technology, thereby driving demand for high-tech logistics real estate that can support these innovations and improve service delivery.

Market Challenges

  • High Construction Costs:The average cost of constructing logistics facilities in Canada has risen to CAD 200 per square foot in future, primarily due to increased material prices and labor shortages. This escalation in construction costs poses a significant barrier for new entrants and existing players looking to expand their operations. As a result, many companies are delaying or scaling back their real estate investments, which could hinder overall market growth in the logistics sector.
  • Regulatory Hurdles:Navigating the complex regulatory landscape in Canada can be challenging for logistics developers. Zoning laws and land use regulations vary significantly across provinces, often leading to delays in project approvals. In future, it is estimated that regulatory compliance can add up to 10–15% to project timelines and costs. These hurdles can deter investment in logistics real estate, limiting the availability of new facilities needed to meet growing demand.

Canada Logistics Real Estate Market Future Outlook

The future of the Canada logistics real estate market appears promising, driven by the ongoing growth of e-commerce and urbanization. As businesses increasingly prioritize efficient supply chains, the demand for strategically located logistics facilities will continue to rise. Additionally, the integration of sustainable practices and technological advancements will shape the market, encouraging investments in innovative solutions. Overall, the logistics sector is poised for transformation, with opportunities for growth in both urban and suburban areas as companies adapt to changing consumer behaviors.

Market Opportunities

  • Expansion of Cold Storage Facilities:With the Canadian food and beverage sector projected to grow to CAD 120 billion in future, there is a significant opportunity for cold storage logistics. The demand for temperature-controlled storage solutions is increasing, driven by the rise in online grocery shopping and the need for efficient supply chain management in perishable goods. This trend presents a lucrative opportunity for investment in specialized logistics real estate.
  • Investment in Sustainable Practices:As environmental concerns grow, logistics companies are increasingly focusing on sustainability. Investments in green logistics solutions, such as energy-efficient warehouses and electric vehicle fleets, are expected to rise to CAD 800 million in future. This shift not only meets regulatory requirements but also appeals to environmentally conscious consumers, creating a market opportunity for developers to build sustainable logistics facilities that align with these trends.

Scope of the Report

SegmentSub-Segments
By Type

Distribution Centers

Fulfillment Centers

Cold Storage Facilities

Cross-Dock Facilities

Urban Logistics Hubs

Others

By End-User

Retail

E-commerce

Manufacturing

Wholesale

Third-Party Logistics (3PL) Providers

Others

By Region

Ontario

Quebec

British Columbia

Alberta

Manitoba

Saskatchewan

Atlantic Canada

Others

By Facility Size

Small (<50,000 sq ft)

Medium (50,000 - 200,000 sq ft)

Large (>200,000 sq ft)

Mega (>500,000 sq ft)

Others

By Ownership Type

Owner-Occupied

Leased

Joint Ventures

REIT-Owned

Others

By Investment Type

Private Equity

Institutional Investment

Public Funding

Pension Funds

Others

By Technology Integration

Automated Warehousing

IoT-Enabled Logistics

Blockchain for Supply Chain

Robotics and AI Solutions

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Canada Mortgage and Housing Corporation, Transport Canada)

Real Estate Investment Trusts (REITs)

Logistics and Supply Chain Companies

Property Developers and Builders

Warehouse and Distribution Center Operators

Retail Chains and E-commerce Companies

Financial Institutions and Banks

Players Mentioned in the Report:

Prologis

Brookfield Properties

Oxford Properties

Dream Industrial REIT

Granite REIT

Pure Industrial (PIRET)

Triovest

GWL Realty Advisors

BentallGreenOak

Summit Industrial Income REIT

Slate Asset Management

Blackstone (Canada Industrial Portfolio)

Colliers International

CBRE Group

JLL (Jones Lang LaSalle)

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Canada Logistics Real Estate Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Canada Logistics Real Estate Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Canada Logistics Real Estate Market Analysis

3.1 Growth Drivers

3.1.1 E-commerce Growth
3.1.2 Urbanization Trends
3.1.3 Technological Advancements
3.1.4 Demand for Last-Mile Delivery Solutions

3.2 Market Challenges

3.2.1 High Construction Costs
3.2.2 Regulatory Hurdles
3.2.3 Limited Land Availability
3.2.4 Environmental Concerns

3.3 Market Opportunities

3.3.1 Expansion of Cold Storage Facilities
3.3.2 Growth in Third-Party Logistics (3PL)
3.3.3 Investment in Sustainable Practices
3.3.4 Technological Integration in Operations

3.4 Market Trends

3.4.1 Rise of Automation in Warehousing
3.4.2 Increased Focus on Sustainability
3.4.3 Shift Towards Flexible Leasing Models
3.4.4 Growth of Multi-Modal Logistics Solutions

3.5 Government Regulation

3.5.1 Zoning Laws and Land Use Regulations
3.5.2 Environmental Regulations
3.5.3 Tax Incentives for Logistics Development
3.5.4 Safety and Compliance Standards

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Canada Logistics Real Estate Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Canada Logistics Real Estate Market Segmentation

8.1 By Type

8.1.1 Distribution Centers
8.1.2 Fulfillment Centers
8.1.3 Cold Storage Facilities
8.1.4 Cross-Dock Facilities
8.1.5 Urban Logistics Hubs
8.1.6 Others

8.2 By End-User

8.2.1 Retail
8.2.2 E-commerce
8.2.3 Manufacturing
8.2.4 Wholesale
8.2.5 Third-Party Logistics (3PL) Providers
8.2.6 Others

8.3 By Region

8.3.1 Ontario
8.3.2 Quebec
8.3.3 British Columbia
8.3.4 Alberta
8.3.5 Manitoba
8.3.6 Saskatchewan
8.3.7 Atlantic Canada
8.3.8 Others

8.4 By Facility Size

8.4.1 Small (<50,000 sq ft)
8.4.2 Medium (50,000 - 200,000 sq ft)
8.4.3 Large (>200,000 sq ft)
8.4.4 Mega (>500,000 sq ft)
8.4.5 Others

8.5 By Ownership Type

8.5.1 Owner-Occupied
8.5.2 Leased
8.5.3 Joint Ventures
8.5.4 REIT-Owned
8.5.5 Others

8.6 By Investment Type

8.6.1 Private Equity
8.6.2 Institutional Investment
8.6.3 Public Funding
8.6.4 Pension Funds
8.6.5 Others

8.7 By Technology Integration

8.7.1 Automated Warehousing
8.7.2 IoT-Enabled Logistics
8.7.3 Blockchain for Supply Chain
8.7.4 Robotics and AI Solutions
8.7.5 Others

9. Canada Logistics Real Estate Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Portfolio Size (Total Logistics/Industrial Sq Ft)
9.2.3 Geographic Coverage (Number of Provinces/Markets)
9.2.4 Occupancy Rate (%)
9.2.5 Average Lease Term (Years)
9.2.6 Net Operating Income (NOI)
9.2.7 Revenue Growth Rate (%)
9.2.8 Return on Invested Capital (ROIC)
9.2.9 Tenant Retention Rate (%)
9.2.10 Development Pipeline (Sq Ft Under Construction/Planned)
9.2.11 Sustainability Certifications (e.g., LEED, BOMA BEST)
9.2.12 Market Penetration Rate (%)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Prologis
9.5.2 Brookfield Properties
9.5.3 Oxford Properties
9.5.4 Dream Industrial REIT
9.5.5 Granite REIT
9.5.6 Pure Industrial (PIRET)
9.5.7 Triovest
9.5.8 GWL Realty Advisors
9.5.9 BentallGreenOak
9.5.10 Summit Industrial Income REIT
9.5.11 Slate Asset Management
9.5.12 Blackstone (Canada Industrial Portfolio)
9.5.13 Colliers International
9.5.14 CBRE Group
9.5.15 JLL (Jones Lang LaSalle)

10. Canada Logistics Real Estate Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Procurement Policies
10.1.2 Budget Allocation Trends
10.1.3 Supplier Selection Criteria
10.1.4 Contract Management Practices

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Trends in Logistics Infrastructure
10.2.2 Energy Efficiency Initiatives
10.2.3 Budgeting for Logistics Operations
10.2.4 Cost Management Strategies

10.3 Pain Point Analysis by End-User Category

10.3.1 Supply Chain Disruptions
10.3.2 Rising Operational Costs
10.3.3 Technology Integration Challenges
10.3.4 Regulatory Compliance Issues

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Development Needs
10.4.3 Infrastructure Readiness
10.4.4 Change Management Strategies

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics Evaluation
10.5.2 Case Studies of Successful Implementations
10.5.3 Long-term Value Assessment
10.5.4 Future Use Case Opportunities

11. Canada Logistics Real Estate Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Cost Structure Evaluation

1.5 Key Partnerships Exploration

1.6 Customer Segmentation

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Market Identification

2.4 Communication Strategies

2.5 Digital Marketing Approaches

2.6 Customer Engagement Tactics

2.7 Performance Metrics


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 Logistics Network Optimization

3.4 Last-Mile Delivery Solutions

3.5 Distribution Partnerships

3.6 Inventory Management Practices

3.7 Technology Utilization in Distribution


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitive Pricing Strategies

4.4 Customer Willingness to Pay

4.5 Price Sensitivity Assessment

4.6 Value-Based Pricing Models

4.7 Pricing Strategy Recommendations


5. Unmet Demand & Latent Needs

5.1 Category Gaps Identification

5.2 Consumer Segments Analysis

5.3 Emerging Trends Exploration

5.4 Customer Feedback Mechanisms

5.5 Market Research Insights

5.6 Product Development Opportunities

5.7 Future Demand Projections


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Retention Strategies

6.4 Feedback and Improvement Processes

6.5 Relationship Management Tools

6.6 Customer Experience Enhancements

6.7 Community Engagement Initiatives


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Cost Efficiency Strategies

7.4 Innovation in Services

7.5 Customer-Centric Approaches

7.6 Competitive Differentiation

7.7 Long-term Value Creation


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup

8.4 Operational Efficiency Improvements

8.5 Training and Development Programs

8.6 Technology Implementation

8.7 Performance Monitoring


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategies
9.1.3 Packaging Innovations

9.2 Export Entry Strategy

9.2.1 Target Countries Analysis
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model Evaluation


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability Strategies


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from Canadian real estate associations and logistics publications
  • Review of government publications on infrastructure development and zoning regulations
  • Examination of market trends through real estate transaction databases and property listings

Primary Research

  • Interviews with logistics real estate developers and property managers
  • Surveys targeting logistics companies to understand space requirements and preferences
  • Field visits to key logistics hubs and distribution centers across Canada

Validation & Triangulation

  • Cross-validation of findings with data from industry experts and market analysts
  • Triangulation of insights from primary interviews with secondary data sources
  • Sanity checks through expert panel discussions and feedback sessions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total logistics real estate market size based on national logistics expenditure
  • Segmentation by geographic regions and types of logistics facilities (e.g., warehouses, distribution centers)
  • Incorporation of trends in e-commerce growth and its impact on logistics space demand

Bottom-up Modeling

  • Data collection on square footage and occupancy rates from leading logistics real estate firms
  • Operational cost analysis based on rental rates and property management expenses
  • Volume and cost assessments based on logistics activity levels and service pricing

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic indicators and trade volumes
  • Scenario modeling based on potential regulatory changes and technological advancements
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Warehouse Space Utilization100Facility Managers, Operations Directors
Distribution Center Efficiency80Logistics Coordinators, Supply Chain Analysts
Cold Storage Requirements60Food Supply Chain Managers, Temperature-Controlled Logistics Experts
Last-Mile Delivery Solutions50Last-Mile Operations Managers, Urban Logistics Planners
Real Estate Investment Trends40Real Estate Investors, Asset Managers

Frequently Asked Questions

What is the current value of the Canada Logistics Real Estate Market?

The Canada Logistics Real Estate Market is valued at approximately USD 19 billion, driven by the growth of e-commerce, demand for efficient supply chain solutions, and infrastructure investments across the country.

Which cities are key players in the Canada Logistics Real Estate Market?

What are the main types of logistics facilities in Canada?

How is the e-commerce sector impacting the logistics real estate market in Canada?

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