Despite low inventory levels, activity in the Regina commercial real estate market has remained healthy, supported by demand across multiple asset classes from out-of-province REITs, institutional and private capital, interprovincial and local investors, as well as owner-occupiers.
Industrial and multi-unit residential real estate have remained the market’s most dominant sectors. Local and interprovincial investors have continued to favour the city’s smaller multi-unit residential stock, while REITs, institutional and private investors from Ontario and Quebec, alongside local owner-occupiers, have been competing for highly sought-after industrial product.
National market continues to evolve
REMAX Canada’s national 2026 Commercial Real Estate Report examined first-quarter activity across 12 major Canadian markets and found that the commercial property market has continued to evolve with improved absorption, particularly in the office sector, where return-to-office mandates are supporting increased leasing activity in premium space. Industrial demand has remained durable nationwide, with inventory challenges persisting. Retail fundamentals have continued to outperform expectations, supported by population growth and infrastructure investment, reinforcing long-term demand. While capital deployment has been measured in most markets analyzed, improving financial conditions have prompted renewed interest in well-located, income-producing assets.
Regina’sIIndustrial demand in Regina outpaces supply
With vacancy rates hovering at about four per cent, the industrial market experienced a dire need for new listings. Demand has continued to outpace supply, especially for warehousing properties. Several transactions have taken place within the last six months, including the sale of a 40,000-sq.-ft. building to a local investor; a 130,000-sq.-ft. multi-tenanted property; and a 40,000-sq.-ft. warehouse purchased by a developer for retrofit. Although there are several older buildings available, most are functionally obsolete with column widths that simply do not work for today’s industrial consumer. The cost to rip out beams and support structure is too expensive for buyers to undertake.
By far, the greatest demand has been for small to mid-size flex-space offering a 70/30 split (warehouse/office) with high ceilings, clear span, equipment storage or a shop at the back. Where this criterion is met, mechanicals/electrical can be easily updated.
Churches have been increasingly turning to industrial warehousing to set up houses of worship, and the trend is expected to continue given the wide-open space required to accommodate large congregations.
Reasonable conversion costs and the benefit of parking also factor into the decision to purchase or lease. Sport organizations have also been choosing industrial product to house pickleball courts and cricket fields. As these activities gain traction, more facilities will be required to meet market needs.
Land destined for industrial development has been plentiful, with an estimated four- to five-year supply currently available. Absorption has been hampered to some extent by the slowdown in population growth, attributable to the government pull-back in immigration levels and the corresponding impact on the local economy. For existing supply to be absorbed, Regina’s population will need to grow at a faster pace in the future, bringing with it industry on a much larger scale.
Office market shows early signs of stabilization
Activity in the downtown core has continued to be a drag on the overall office segment, although there have been signs of improvement year over year. Vacancies in the core currently sit at approximately 12.5 per cent, down from 13.3 per cent during the same period in 2025. One of the core’s most notable transactions at the tail end of 2025 was the lease by Sask Health of just under 100,000 sq. ft. of downtown office space in Canada Life Place, making it one of the largest commercial transactions to occur in the province. Efforts are underway to breathe new life into the downtown core, with several new initiatives planned, including multi-phase revitalization at the site of the former Gordon Block building to create a vibrant community and event space dubbed “The Skuare.”
Suburban office space has fared somewhat better, continuing to draw tenants from the downtown core due to greater accessibility, parking and safety. Young, tech savvy professionals have also contributed to growing demand for smaller, turn-key office buildings in suburban markets, with many owner-operators looking to relocate their personal medical/dental practices and adding like-minded tenants. Supply, however, has been limited, with smaller buildings that offer both a desirable location and favourable presentation few and far between and most owner-operators unwilling to retrofit existing product.
Retail strip malls draw investors, leasing tight in established neighbourhoods
More balanced market conditions have created opportunities for both landlords and tenants in Regina’s retail sector. Retail strip malls and centres with grocery stores, restaurants and personal services have continued to be popular with investors. A syndicate comprised of Alberta-Ontario investors recently purchased a strip mall on Pasqua St. with triple A-tenants for $12 million off market. Those leasing are facing tighter market conditions, with low vacancy rates in established areas, including walkable neighbourhoods such as Cathedral Village that offer unique cafes, eateries and boutiques.
Tight rental conditions ease as supply improves
Multi-unit residential has continued to perform well in Regina, with strong demand from both local and interprovincial investors targeting smaller, older product. Buildings in the 12- to 24-unit range, along with triplexes, have continued to trade quickly, reflecting the appeal of attractive price points and stable cash flow. Pricing has moved upward, impacting acquisition costs. Values now range from approximately $110,000 to $115,000 per door, up from about $100,000 not long ago. Smaller assets have remained especially competitive, as evidenced by recent multiple-offer activity on a 26-unit multi-residential property.
Inventory levels have begun to rise as new product comes to market, and the influx of purpose-built rental supply is starting to ease lease rates at the margins. While vacancy remains exceptionally tight, hovering near two per cent, there is growing awareness of the risk of overbuilding if development accelerates too quickly.
While institutional players and REITs focused primarily on larger, high-rise or large residential complexes in past years, acquisition activity in this segment has moderated. Financing remains accessible, with many investors acquiring assets through conventional lending before transitioning to Canada Mortgage and Housing Corp.-backed products. Overall, multi-unit residential remains one of the most active and sought-after asset classes in Regina, supported by healthy fundamentals and consistent investor appetite.
Balanced growth expected in 2026-2027
Momentum is expected to build in Regina’s commercial real estate market following a slower start to the year as investors weighed tax implications and economic signals. Strong economic fundamentals, anchored by the resource sector and relative affordability, should serve to bolster demand throughout the remainder of the year. Tight industrial levels and sustained interest in multi-unit residential should continue to underpin activity, while rising inventory levels across select segments begin to restore balance. Improving equilibrium between supply and demand should lay the groundwork for more consistent growth heading into 2027.
