The United States and Canada are engaged in an escalating trade conflict, but early signs suggest that cross-border commercial real estate investment has not been significantly affected. Data from the second quarter shows that Canadian firms increased their purchases of U.S. real estate assets. Although the total dollar amount remains below the five-year average, this trend indicates that buyers from Canada are not letting trade issues deter their investments.
Adam Jacobs, who leads Canada research at Colliers, noted that real estate is not an export-driven industry, according to Yahoo Finance. He explained that Canadian companies do not typically build housing for sale in distant markets like Japan.
The amount of capital deployed by Canadian firms into U.S. real estate rose during the 12 months ending in June compared to the previous quarter. Canadian firms spent $9 billion on U.S. real estate during the 12 months ending in June. The comparable rolling total at the end of the previous quarter was $5 billion. Canadian firms sent 32% of the capital raised for global acquisitions to the U.S. in the year through June, up from 19.3% for the rolling 12 months a quarter earlier.
Canadian investors have focused on multifamily properties, industrial assets, and office buildings when sending capital abroad. Japan, the UK, Spain, and Australia are among the top destinations for Canadian investment outside of North America. Canadian firms invested a combined $4.9 billion in those four countries during the 12 months through June.
The Colliers report does not include data from recent months due to the intensifying trade war between the U.S. and Canada. Despite these tensions, the United States remains the leading destination for Canadian capital seeking global real estate opportunities. This preference has remained consistent throughout President Donald Trump's second term in office. The U.S. is also attracting a larger share of global real estate capital as 2026 progresses.
The United States attracted $28.3 billion in cross-border real estate capital in the latest period covered by the Colliers data. That put the U.S. $3.4 billion ahead of the UK as a destination for global real estate capital. Part of the appeal is the size of the American market and the large number of investment opportunities available across different property types.
Colliers said global standing-asset investment volumes rose 21.2% from a year earlier in the second quarter. Investment volumes across North America increased 21.5% from a year earlier. Multifamily remained the leading asset class in North America while industrial properties ranked second.
Recent deals also show that large Canadian investors remain active in the United States. In July, CPP Investments and Brookfield Asset Management agreed to take LXP Industrial Trust private in a $5.2 billion all-cash deal. Brookfield also bought a 49% stake in a $2.1 billion medical office portfolio owned by Healthpeak Properties that month.