Q1 2026 TORONTO OFFICE MARKET REPORT

For the first time since the pandemic began, overall vacancy declined, falling to 16.4 percent. While vacancy remains elevated by historical standards, the quarter marks an important shift in direction as occupier demand gradually returns.

Demand remains strongest for high-quality space in the downtown core, where vacancy sits at 13.8 percent, and premium buildings continue to outperform the broader market. With limited new supply expected over the next several years, tenants seeking best-in-class space may face a more competitive environment moving forward.

Across the GTA, average asking net rents rose to $24.73 per square foot, reflecting continued strength in top-tier assets while secondary markets remain more negotiable. We are also seeing organizations take a more strategic approach to workplace decisions, balancing return-to-office momentum with efficiency, flexibility, and employee experience.

Looking ahead, we remain cautiously optimistic. While broader economic uncertainty still exists, improving demand and constrained future supply suggest the market may continue progressing toward recovery through 2026.

Read more in our Q1 2026 Toronto Office Market Report.