The commercial real estate (CRE) sector is constantly evolving, driven by technological advancements, economic shifts, and changing investor priorities. Staying abreast of these trends is crucial for industry professionals to navigate the market effectively.
From innovative SaaS solutions to the rising demand for ESG loans, these developments are reshaping the way businesses approach real estate financing. Here, we explore four key trends influencing the market and how we can help you navigate these changes.
Moving from in-house solutions in favour of off-the-shelf SaaS and BPO solutions
While initially slow to adopt new trends, the CRE sector is increasingly adopting Software as a Service (SaaS) and Business Process Outsourcing (BPO) solutions to streamline operations and improve efficiency. These tools enable lenders and real estate professionals to reduce costs and enhance scalability, while focusing on their core business activities.
Traditional systems often require significant investment in hardware, software, and IT support, limiting flexibility and scalability. SaaS solutions, in contrast, provide cloud-based platforms that are accessible anywhere, anytime, and on any device. BPO complements this by outsourcing non-core processes like underwriting and loan servicing to specialized providers, allowing firms to operate leaner and more efficiently, and freeing up internal resources to focus on strategic initiatives.
At Intellifi, we offer solutions tailored for the commercial real estate industry, including our end-to-end ecosystem, Orbit Technology Solutions, which includes a comprehensive platform that integrates underwriting, servicing, and institutional reporting capabilities. By combining it with our Intelligent Lending Operations solutions, we enable businesses to streamline operations, reduce administrative burdens, and improve operational transparency.
Growing demand for sustainable and ESG-aligned lending products
Environmental, Social, and Governance (ESG) considerations are increasingly influencing investment decisions across all sectors, especially CRE. Investors and developers are prioritizing sustainable projects that align with global goals to reduce carbon footprints and promote social responsibility.
Regulatory incentives and heightened consumer awareness are pushing ESG loans to the forefront. Green buildings, renewable energy initiatives, and community-focused developments are now integral to achieving long-term value and mitigating risks associated with climate change. As an example, the Canada Greener Homes Loan, which is being delivered by Intellifi in partnership with the Government of Canada, offers interest-free financing to help Canadians make their homes more energy efficient and comfortable.
ESG loans often come with lower interest rates and improved access to capital, making them an attractive option for borrowers committed to sustainability. However, accessing these loans can be challenging due to the complexities of ESG reporting and the need to demonstrate compliance with various sustainability standards.
As a trusted partner in CRE financing, Intellifi supports lenders in capitalizing on lender’s ESG goals. Our advanced tools streamline the underwriting of green loans, helping you meet compliance requirements while highlighting your commitment to sustainability.
Continued strengthening in the CMHC-insured space
CMHC-insured financing continues to be a dominant force in Canada’s commercial real estate market. These loans offer lenders and borrowers access to competitive interest rates, reduced risk exposure, and enhanced investment opportunities.
Amid continued economic uncertainty in 2025, CMHC-insured loans provide a layer of security that appeals to both lenders and investors. With benefits like extended amortizations and lower capital requirements, these products are an invaluable tool for driving growth in the multi-residential and affordable housing sectors.
Intellifi’s expertise in CMHC financing sets us apart. From data driven insights on pricing and market activity, to the facilitation of the lending process from origination to servicing our data and technology provide the perfect platform to simplify and execute your insured lending objectives.
Softening in the industrial space
After years of unprecedented growth, the industrial real estate market is experiencing a softening. Rising interest rates, increased supply, and shifting economic conditions are contributing to a more balanced landscape.
While demand for logistics and warehouse space remains strong, developers and investors are recalibrating expectations. Vacancy rates are inching up, and rental growth is stabilizing as new inventory enters the market.
Despite these challenges, the long-term outlook for the industrial sector remains positive. Continued growth in e-commerce, the rise of logistics and supply chain management, and the increasing demand for data centers are expected to drive demand for industrial space in the years to come. This calls for a more strategic approach to investment and financing.
Intellifi can help businesses navigate the evolving industrial real estate market by providing data-driven insights to inform investment decisions. Our platforms can help lenders identify emerging trends, assess market risks, and optimize their portfolios to maximize returns and minimize exposure to market volatility.
These trends underscore the need for CRE firms to adapt and embrace innovative solutions in 2025 and beyond. By leveraging technology, prioritizing sustainability, and navigating market shifts effectively, CRE professionals can thrive in this dynamic environment. Intellifi is committed to supporting our clients in this journey by providing innovative technology, expert guidance, and unparalleled industry expertise. If you’re interested in learning more about how we can help you, please contact us at market.intelligence@intellifi.ca