Transaction activity in the Saskatoon commercial real estate market have remained broadly in line with year-ago levels, with hospitality, industrial and multi-residential representing the most sought-after segments of the market. Activity in 2026 has been constrained by tighter inventory conditions, as many owners have opted to hold assets amid improving market fundamentals and limited supply.
Population growth has continued to underpin market fundamentals in the city. Strong immigration has been a key driver since 2021, with population in the Saskatoon CMA rising more than 15 per cent to nearly 330,000 residents as of July 1, 2025, according to Statistics Canada’s Population Estimates by CMA and Census Agglomeration. The growth is expected to continue in 2026. Investor activity has remained concentrated amongst local buyers, REITs and institutional players, particularly in the market’s most active commercial segments.
Saskatoon capital focused on existing assets
Acquisition strategies have been increasingly focused on existing assets with repositioning potential, as higher land and construction costs have made new development more challenging. Out-of-province investors, primarily from Ontario and British Columbia, have continued to seek out opportunities, but activity has moderated somewhat from peak levels.
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.
Industrial leads in Saskatoon while hospitality is repricing
Industrial has continued to be the strongest segment of Saskatoon’s commercial market. Owner-occupied manufacturing facilities (heavy equipment), trucking yards, and third-party liquor warehouses have been among the most sought-after asset classes. Recent changes by the Saskatchewan Liquor and Gaming Authority to expand distribution to include speciality wines and spirits, have further increased demand for industrial space. Supply has remained limited, sales activity has been strong, and lease rates have climbed significantly, now approaching $14 per sq. ft. Retrofitting existing buildings has continued to be the preferred strategy in Saskatoon’s industrial market, as construction costs for new steel frame warehouses have risen to approximately $280 per sq. ft., up from $180 just a few years ago, challenging overall project feasibility.
The hospitality sector has remained on a growth trajectory, as visitor spending in Saskatoon in 2024 surpassed pre-pandemic levels, according to the Canadian Tourism Data Collective. Hospitality demand now extends beyond Saskatoon into neighbouring Yorkton, Prince Albert and Moose Jaw. Rising hotel revenues have driven sharp repricing of the sector, with cap rates compressing from approximately 15 per cent two years ago to about eight per cent today. Despite improved operating performance, asset values have yet to fully adjust and remain relatively flat.
Business sales have continued at a steady pace throughout Saskatoon and the surrounding areas, led by gas stations with attached retail food franchises. Unlike other asset classes, current economics have favoured new construction in this segment, and the trend is anticipated to continue, as it is now more cost-effective to acquire land and build, particularly along high-traffic highway corridors.
Retail and residential momentum
Demand for multi-unit residential has remained robust in Saskatoon, with major players including Avenue Living Asset Management and Mainstreet Equity Corporation acquiring existing properties. Smaller out-of-province investors have also been active, with most seeking residential buildings offering upwards of 12 units, but product has become increasingly difficult to find. Canada Mortgage and Housing Corp. remains the lender of choice, although more stringent requirements have made it somewhat harder to finance multifamily buildings.
Land sales have also been underway as the city expands outward. However, larger developers and builders are increasingly controlling the full development process, with peripheral neighbourhoods such as Brighton experiencing rapid growth. Pricing pressure has remained evident, with demand continuing to outpace supply. As a result, Saskatoon reached an all-time-high benchmark price of $435,200 in March 2026, a five-per-cent increase over the same period last year, according to the Saskatchewan Realtors Association.
While new residential development has been driving retail growth, neighbourhood retail in trendy hot pockets has continued to command the highest rents. Areas such as the Eighth St. East commercial corridor, Broadway Avenue, and 20th Street West offer a unique combination of shops and restaurants, with low vacancy rates and high demand.
Gradual evolution of office
While major civic investments, including the new downtown central library and the Link BRT system, should serve to strengthen Saskatoon’s downtown core in the coming years, the impact is expected to be gradual. The flight to quality that is underway in the downtown core of most other major urban centres across Canada is happening in Saskatoon, but to a lesser extent. The late-2025 sale of the River Centre, a downtown Class A asset, highlights investor interest but overall downtown activity has remained focused on smaller, privately driven transactions. Suburban office properties, by contrast, have continued to perform well. Mixed-use buildings that offer up residential/retail or medical office/retail are popular with end users and investors.
Farmland seeing strong demand, shifting buyer profile
Farmland activity across the province has remained strong, and competitive pressure on high-quality land has continued to intensify. According to the 2025 FCC Farmland Values Report, the value of cultivated farmland in the province rose by 9.4 per cent in 2025, “despite higher input costs, tighter producer margins, trade disruptions and variable weather conditions across much of the province.”
Days on market have declined to well below 100 at present, with the strongest demand concentrated in the East Central and Southeast regions. Several large sales have been reported in the western part of the province where the Hutterite community controls a significant portion of available land.
Consolidation has remained a defining trend, as farm operators endeavour to acquire neighbouring acreage amid a declining number of industry participants. Ongoing amalgamation is expected to have a growing impact in the years ahead, driven by rising costs, an aging farmer population, and generational transitions, as many successors pursue careers outside of agriculture.
While local farmers, particularly those with strong equity positions, have continued to dominate the market, investor participation has largely receded due to softer commodity pricing and tighter markets, with crop values off recent highs. At the same time, farmland marketing practices have been evolving. Properties that once traded primarily through word-of-mouth are increasingly being brought to the open market to achieve broader exposure. High-quality farmland has been commanding prices in the $600,000 to $700,000 range and above per quarter section, with buyers prioritizing well-drained, fertile land featuring a high percentage of cultivated acreage.
Livestock producers have also renewed their interest in pastureland, supported by record-high cattle prices. Pastureland values have been increasingly influenced by cattle market dynamics, particularly in the southwest, where most cow herds are concentrated. In contrast, much of east-central Saskatchewan has transitioned to crop production, reducing the availability of quality pastureland.
Population drives healthy commercial and farmland markets
Saskatoon’s commercial real estate market has remained stable and supply-constrained, with population growth supporting both steady demand and asset values across the industrial, multi-residential and hospitality sectors. Investor activity has continued to favour income-producing assets and repositioning opportunities, since elevated development costs limit new supply. Industrial has continued to lead performance while hospitality has experienced ongoing repricing. Retail and rental fundamentals have remained healthy, propped up by residential expansion.
Beyond the urban core, farming and farmland activity have reinforced market resilience, with strong demand from well-capitalized local operators driving consolidation. This has kept high-quality land values elevated, even amidst softer investor participation due to tighter margins and lending conditions. Although some moderation in economic growth is expected this year, Saskatchewan will likely be a frontrunner with Real GDP projected to hit 1.6 per cent in 2026, bolstered by natural resources and the lowest unemployment rate in the nation. Overall, this bodes well for commercial real estate activity in Saskatoon, which remains positioned for steady performance as supply challenges persist.
