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nvestor confidence in Canada's multi-suite residential rental properties remained strong in the second quarter, with demand outpacing supply. According to Morguard's 2025 Economic Outlook and Market Fundamentals Second Quarter Update, solid fundamentals continue to support the real estate market.

    Multi-suite residential transaction volume rose by 39.4% quarter-over-quarter to $812.0 million, driven by healthy medium- to long-term fundamentals. While rental demand is expected to moderate due to lower immigration targets and increased first-time homebuyer activity, asking rents are projected to climb through next year as new supply enters the market.

    High-quality industrial properties remained attractive to investors in the second quarter, with many users opting to buy space instead of paying elevated lease rates. Private capital groups also targeted acquisition opportunities in a less competitive market. The Canadian office leasing market was relatively stable, with trophy assets remaining popular among tenants seeking highly-amenitized spaces in core locations.

    Retail investment activity moderated in the second quarter after a strong start to the year, but sales have remained brisk over the past 12 months. Canada's economy showed signs of cooling in the second quarter due to trade disruptions and tariff pressures, which weighed on job creation, consumer spending, and business investment. Despite these headwinds, core inflation remains under control.

    The Bank of Canada will face a challenge in balancing support for economic growth with its mandate to maintain price stability as it navigates the current economic landscape.