As we enter the new year, there is no shortage of challenges for real estate owners and investors to navigate—but there are also reasons for optimism. Those who respond thoughtfully to emerging risks will be best positioned to come out ahead.
Uncertainty will persist through 2026, driven by pressures on profitability, ongoing talent shortages, catastrophic weather events, and rising cyber threats. Yet some relief is beginning to take shape. The Bank of Canada’s two reductions to the overnight lending rate last fall will help ease financial strain, but the most meaningful advantage for many owners may come from potential reductions in insurance premiums. Competition for favourable policies will remain intense, but well‑maintained buildings and carefully managed risk exposures will give owners a clear edge.
Staffing issues
At the same time, property owners are struggling to find qualified property managers in both the rental and the condo markets. With nearly half of property managers at or above 50 years of age, it can be a challenge to find an experienced professional to manage multi-residential buildings. Creative employee benefits packages may be the best way to attract experienced professionals to the team, but not without improved training opportunities and stronger compensation.
Cybersecurity
Cybersecurity is another major risk facing real estate owners in 2026. Although many building owners say they are confident they can protect their holdings—and their tenants—the truth is that real estate companies are prime targets for cyber risk, including business email compromise and wire fraud schemes. Real estate owners and investors will need to learn how to manage these risks to avoid falling victim to a potentially catastrophic scam.
Risk management
Underwriters will look favourably on properties with updated valuations and accurate cost projections, as well as a strong risk story and demonstrated risk management strategies. The key will be the degree of competition from underwriters and understanding which class of real estate they are targeting. Consulting with a local broker can help deliver optimal results in 2026.
Best practices to protect your business
For apartment owners, here are four strategies that can help protect your bottom line, support your employees and build resilience in the coming year:
- Accelerate your risk maturity.
With so many growing threats to real estate investments, owners and investors have to look carefully at their holdings and make educated decisions. Consider taking on higher deductibles to reduce premiums and alternative risk transfer vehicles.
- Analyze loss trends.
Scrutinize any large losses and craft a risk story to share with carriers. Focus on what you’re doing to prevent future claims and revisit alternative risk vehicles regularly.
- Increase workforce engagement through benefits.
Attract and retain employees by introducing a benefits strategy based on personalized benefits. Work with your benefits expert to identify the right ways to attract and retain those employees.
- Treat your broker like a team member.
Your broker can be your biggest asset. But don’t spring new information on them at the last minute. Share major business changes, exposures and insurance needs well ahead of the renewal cycle so they can identify the best options and help you secure appropriate coverage – even within your budget.
Drew Fenton is the real estate practice leader for global insurance brokerage Hub International in Toronto.
