There are two types of brownfield markets in Canada, the public sector and the private sector markets. Both of these markets may require public and private sector funding, creative land uses, innovative approaches and incentives to redevelop. Both must also adhere to applicable federal and provincial regulations and municipal bylaws (if applicable).  

Public Sector Market
Brownfields that lie within the public domain are often remediated and redeveloped according to necessity. For the public sector, the market driver is often public good or the need to ensure that the general public is living in a safe, clean and healthy environment. 

Sites that are owned fully or partially by the federal, provincial and municipal governments fall within this market. These types of sites, such as the Sydney Tar Ponds in Nova Scotia, are the shared responsibility of all three levels of government and often receive support (financial, social and technical) from all three levels of government. Public sites are often tendered to the private industry for remediation and redevelopment and are sometimes sold to the private sector market for less than projected market value to initiate private interest and funding. All sites must still adhere to strict government approvals and publicly input. 

Private Sector Market
Privately owned properties can be divided into primary and secondary markets. 

This distinction however is not always clear as sites often end up with unexpected costs and delays that may lengthen the time and return on investment thereby shifting potential properties from primary market (positive) conditions to secondary market (either neutral or negative) conditions. 

Primary Market brownfield properties are identified as positive value sites (“right-side up” properties) that typically yield a high return on investment (i.e. the cost and time to remediate and redevelop are fairly insignificant compared to short-term economic gain). 

Good examples of where primary market conditions for brownfield properties can be found are in large, thriving cities where there is a high demand for prime real estate such as Vancouver, Toronto and Calgary.

• The driver to motivate brownfields redevelopment is economic performance and return on the end use. In each of these cities, land is at a premium and this is a great incentive for developers to take on the challenges of redevelopment without any other incentives necessary.
  
• Developers and municipalities within dense urban environments often prefer redevelopment projects that result in residential land usage as this land often provides the highest return on investment and gain in tax revenue generation for the city.
  
• Exceptions for the final desired land usage do exist. For example, in Toronto’s downtown core, the need to preserve or reduce the loss of industrial lands or employment lands is a concern. Although a developer may find that converting a brownfield property to a high-density residential property will yield the greatest return on investment, the municipality has implemented measures to ensure mixed land usage is implemented and preservation of industrial lands.