Last month, industry leaders gathered in Toronto for the National Association for Industrial and Office Parks (NAIOP) 2025 Conference, where the spotlight was on the forces reshaping commercial real estate across North America. From the role of retail in building community, to the economic and geopolitical shifts driving new opportunities, the event provided timely insights for developers, investors, and advisors alike. The discussions offered key takeaways on how the industry can adapt, innovate, and prepare for what lies ahead. Below is a recap of a few of the major themes from the conference:
Community-Driven Retail: Building Places, Not Just Spaces
Retail is evolving from a purely transactional model to a central role in place-making and community identity. Today’s most successful developments integrate retail as an experience that connects people, culture, and local character. Forward-thinking approaches emphasize smaller, more flexible, and more experimental concepts such as pop-ups, incubators, and interactive art or activation spaces to bring energy to underutilized areas. When thoughtfully designed, retail can anchor neighborhoods, strengthen engagement, and create lasting value.
Succession Planning: Securing the Future of Commercial Real Estate Leadership
Succession planning is a critical priority for real estate firms, yet it is often delayed. Successful planning requires addressing unique challenges such as complex ownership structures, valuation considerations, tax implications, and preserving organizational culture. Effective succession strategies typically follow four key steps:
- Start sooner than you think—give yourself runway.
- Align financial, legal, and cultural goals—don’t silo them.
- Prepare future leaders early—whether family, internal executives, or external hires.
- Stress test your plan—run scenarios to anticipate bumps.
When done proactively, succession isn’t just an exit strategy, it becomes a tool to preserve legacy, protect employees, and ensure continuity.
Economic Outlook: From Tariffs to Tenants
Current macroeconomic and sector-level trends highlight ongoing policy uncertainty, including trade tensions, tariff shifts, and global supply chain disruptions, which are contributing to a cautious capital markets environment. Across asset classes, North America seeing mixed signals:
- Industrial: Demand remains strong, though vacancy is inching upward as supply catches up.
- Multifamily: In Canada, new supply is surging; in the U.S., recovery continues but more unevenly.
- Retail: In many Canadian markets, occupancy is nearing full levels, especially in prime corridors.
- Office: Polarization remains—trophy Class A assets are holding value, while older B and C stock struggle more with repositioning.
Capital markets continue to digest prior tightening, and upcoming debt maturities highlight refinancing risks that require careful attention. At the same time, easing monetary policy may help mitigate some pressures. Overall, commercial real estate activity remains active, but organizations must stay vigilant and be prepared to pivot as market conditions evolve.
North American Union? Resilience & Continental Strategy
Emerging trends suggest the North American commercial real estate landscape is becoming increasingly interconnected. Factors such as supply chain pressures, ESG expectations, and geopolitical risks make a purely national perspective less effective. Cross-border agreements, nearshoring initiatives, and international capital flows are contributing to a form of continental convergence. Climate-driven migration is shifting demand toward resilient regions, including the Great Lakes, interior corridors, and stable resource hubs. Canada’s resource-rich markets are well-positioned to benefit from growing demand for minerals, energy, housing, and foreign investment.
For commercial real estate leaders, this means adopting a broader perspective and considering not just where to develop locally, but where across the continent growth and resilience are aligning.
Looking Ahead
One theme came through clearly: adaptability. Whether it’s designing spaces where people want to gather, planning for leadership changes, navigating economic uncertainty, or looking at growth on a continental scale, the real estate industry is being pushed to evolve. Firms that embrace change, focus on resilience, and think creatively about the future will be best positioned to turn today’s challenges into tomorrow’s opportunities.
If you’d like to discuss how these takeaways may impact your organization or explore strategies for navigating change, our team is here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
