Pier 4's targeted approach uncovers high-growth opportunities in cities often overlooked by traditional investors
This article was produced in partnership with Pier 4
When Adam Ashby, CEO of Pier 4, thinks of Kitchener-Waterloo, he recalls how different the area looked just a decade ago..
This observation isn’t just personal reflection - it’s proof of a fundamental shift in Canada’s real estate dynamics. As Managing Partner at Pier 4, a Toronto-based real estate company specializing in multi-family apartments across Canada, Ashby sees secondary markets like Kitchener not as alternatives to major urban centres but as the next frontier for growth. And the data backs him up.
Investors, once fixated on primary markets, are turning their gaze to Canada’s secondary cities, which have quietly outpaced traditional powerhouses in key economic indicators: population growth, job creation, and rental demand.
For Pier 4, these trends aren’t incidental. They are central to an investment strategy built on the conviction that these secondary markets offer not only resilience but outsized potential.
“The growth we’re seeing in places like Kitchener and other secondary markets we are invested in isn’t just catching up,” Ashby stresses. “It’s outperforming.”
Why secondary markets are no longer second best
Real estate investment clients have traditionally gravitated toward primary markets like Toronto and Vancouver, drawn by their size and perceived stability, but Ashby argues that currently the secondary markets hold more opportunity. Take Kitchener-Waterloo: once dismissed as a commuter town, it has transformed into a tech hub, home to Google’s largest Canadian headquarters and two major universities. With direct GO train access and improved infrastructure, the region has become an independent economic engine, not just a satellite of Toronto. “People can live, work, and build their lives here,” Ashby explains. “It’s a self-sustaining market.”
Eastern Canada tells a similar story. Moncton, for instance, was recently named the second-fastest growing city in the country. The city has attracted major employers such as Walmart’s national distribution centre and an expanding network of call and distribution centres; a powerful endorsement of the region’s potential. According to Ashby, these developments are not only creating jobs but also anchoring long-term population growth. “You’re seeing people move here not just for affordability but for opportunity. These employers aren’t just creating jobs, they’re helping people put down roots. People are moving there for work and staying because they can afford to build a life,” he says.
One of the primary concerns investors have with secondary markets is stability. Are these smaller cities capable of withstanding economic cycles? Pier 4’s answer is once again in the numbers. In cities like Moncton, Kitchener, and Halifax, unemployment rates have consistently hovered between 1 and 2 percentage points below the national average over the past three years. Vacancy rates, meanwhile, have remained well below the 3% mark, reflecting tight rental markets and limited new supply. These fundamentals have translated into robust rental growth, in some cases exceeding that of Toronto and Vancouver.
“From 2021 to 2024, New Brunswick and Nova Scotia were the fastest-growing rental markets in the country,” Ashby points out. “This isn’t speculation - it’s happening now.”
The road ahead: Connectivity, affordability, and demand
Pier 4 didn’t emerge overnight; it grew steadily from its inception in the 1980s as a family-run contracting business and gradually evolved into an integrated real estate investment platform. By acquiring and operating multi-tenant buildings, the team developed a hands-on understanding of how to add value and generate sustainable returns.
Today, Pier 4 operates as a private REIT, specializing in low- and mid-rise multifamily properties in Canada’s secondary cities. But the firm’s philosophy hasn’t changed. “We still approach every investment with the same operational mindset,” says Ashby. “We’re not just buying assets - we’re building communities and strengthening the economic fabric of these regions.”
That mission goes beyond growth and returns – it’s about improving the lived experience of current residents. Through Pier 4's internal property management company, they deliver responsive service and day-to-day care. At the same time, Pier 4 is investing significantly in their properties with capital upgrades that enhance buildings inside and out – from common areas and unit interiors to energy systems and curb appeal.
That unique focus on a segment of the market often ignored by larger institutional players, low- and mid-rise apartment buildings, typically between 20 and 70 units — is a valuable differentiator. “We deliberately target these assets because they offer a different opportunity set,” says Ashby. Larger REITs compete aggressively for high-rise towers in major cities, often driving prices beyond what makes sense from a value-add perspective. In contrast, Pier 4’s focus allows it to acquire well-located properties in high-growth markets, and the potential for operational improvement is significant.
“For investors, it’s a way to gain exposure to real estate without doing the heavy lifting,” he adds. “And more importantly, it’s exposure to regions with real, measurable growth.”
Looking five to ten years out, Ashby sees continued momentum. Ongoing infrastructure investments - like expanded transit links and regional economic development - are accelerating the growth trajectory of secondary markets. At the same time, affordability challenges in major centres are pushing both individuals and businesses to consider alternatives.
“The supply-demand imbalance in housing isn’t just a Toronto or Vancouver problem. It’s national,” says Ashby. “And as more people look for affordable places to live and work, secondary markets are absorbing that demand. The result is continued upward pressure on rents and property values.”
For Pier 4, the strategy is clear: continue expanding its footprint in Ontario’s secondary markets while deepening its presence in Eastern Canada – and looking beyond, to emerging high-growth regions across the country. Western Canada and select Prairie cities, for instance, are beginning to show similar fundamentals, making them potential future areas of focus as Pier 4 evolves. By focusing on the overlooked, Pier 4 is delivering more than returns. “There’s comfort in familiar names, but the real opportunity lies where fewer people are looking,” Ashby concludes.
