Commercial Real Estate
Expert Legal Guidance for Canadian Real Estate
Canada has been a favorite for many property investors for a long time because it has a stable economy, a clean legal framework, and an advanced infrastructure. The property market in the country is a pretty safe place to be for domestic and foreign investors alike. Despite its stability, though, the sector still has to develop at breakneck speeds, driven by issues such as population growth, migration patterns, technology, weather, and policy.
To successfully navigate this dynamic landscape, developers and investors require more than legal counsel—they require a team of experienced legal professionals familiar with the subtleties of Canadian real estate and imbued with market insight and strategic acumen.
Understanding the Forces Shaping Canadian Real Estate
There are a few key trends currently shaping the Canadian real estate market:
Urbanization
More than 80% of the Canadians reside in urban areas, and major cities such as Toronto, Vancouver, and Montreal are facing extreme development pressure. High-density residential use, mixed-use buildings, and creative commercial buildings are fueling this pressure.
Demographics
The population of Canada exceeded over 40 million in 2023 with major contributions through immigration. Such population growth fuels demand for residential, commercial, and industrial property in all provinces.
Technology
Green building, PropTech, and intelligent buildings are becoming the norm. Legal counsel needs to now factor in data protection, intellectual property, and eco-friendly building standards in transactions.
Government Regulation
Canadian real estate is highly regulated at the federal, provincial, and municipal levels. For instance, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, proposed in 2023 and just renewed, limits foreign buyers from purchasing residential property in most urban centres. Provincial statutes such as the Planning Act (Ontario) or British Columbia’s Real Estate Development Marketing Act (REDMA) are central to development and transactions.
Full-Service Legal Solutions for Real Estate Transactions
With these complexities in mind, real estate clients—ranging from institutional developers and investors to REITs and pension funds—look to legal teams with full-range capabilities and deep familiarity with local markets. Top Canadian legal teams assist clients in the following areas:
1. Acquisitions, Dispositions, and Joint Ventures
No matter if you are purchasing one property or a portfolio of them, attorneys assist in structuring transactions, reviewing due diligence, analyzing zoning and environmental hazards, and overseeing closings. Joint ventures, another feature of commercial developments, entail sophisticated agreements on ownership, profit allocation, and dissolution.
2. Investment Advisory
Institutional investors such as most of Canada’s large pension funds, CPP Investments and OMERS, hire experienced legal professionals to oversee real estate portfolios worth billions. Legal professionals advise on tax-efficient structures, governance, and compliance with securities law.
3. Real Estate Development
From rezoning and land acquisition to construction agreements and municipal permits, development projects involve elaborate legal planning. In most provinces, developments have to catch up with growth plans and community benefits plans (e.g., Toronto’s inclusionary zoning bylaw and Ontario’s Bill 23).
4. REIT Formation and Capital Markets
REITs (Real Estate Investment Trusts) are also a favored vehicle in Canada, with a market capitalization of over CAD $100 billion. Lawyers play a role in the establishment and advising of REITs, such as structuring initial public offerings (IPOs), securities legislation compliance, as well as ongoing disclosure requirements under instruments like National Instrument 81-102.
5. Real Estate Financing
Legal advice assists with loan agreement negotiations, mortgage acquisitions and registries, and assistance with debt restructuration. They also arrange mezzanine financing, building loan facilities, and syndications while ensuring Bank Act compliance and provincial mortgage broker compliance with provincial laws.
6. Commercial Leasing
Lawyers guide lease deals in retail, office, and industrial real estate. Landlord or tenant, a solid lease safeguards your rights, reduces conflicts, and provides compliance with legislation such as the Commercial Tenancies Act (Ontario) or relevant municipal by-laws.
7. Infrastructure and P3 Projects
Large public projects like transit extensions, hospitals, or utilities are typically achieved as public-private partnerships (P3s). P3 contracts are drafted by legal experts, risk is allocated, and regulatory compliance is coordinated in accordance with provincial P3 policies like Infrastructure Ontario or Partnerships BC.
8. Asset and Risk Management
From environmental due diligence under the Canadian Environmental Protection Act to title insurance and conflict resolution, lawyers are at the forefront of discovering and negotiating legal and operational risk throughout the life of a real estate asset.
A Multidisciplinary Approach to Real Estate Law
Real estate does not exist in isolation. It intersects with a myriad of other areas of law, such as:
- Taxation – GST/HST implications advice, land transfer tax structuring to optimize capital gains.
- Corporate Governance – Assisting REITs, private equity sponsors, and development companies with ensuring compliance.
- Construction Law – Preparing and reviewing construction agreements, lien legislation management (e.g., the Ontario Construction Act).
- Environmental Law – Handling contaminated site and climate-related disclosure risk.
- Cross-border Law – Assisting U.S. and foreign investors in understanding Canadian regulatory variations and treaty issues.
The most effective legal teams bring all these together to provide coordinated and strategic guidance that serves clients’ business interests.