10/11/2026
Canada's Office Recovery Meets a Thin Pipeline | Liana Michina
LianaMichina.com
We're seeing an encouraging trend in Canada's office market, with a fifth consecutive quarter of positive demand and net absorption reaching 2M sq-ft. National vacancy rates have eased to around 17%, with both downtown and suburban markets showing improvement—downtown at approximately 17% and suburbs close to 16%. What's clear from the latest numbers is that tenants are prioritizing higher-quality spaces: downtown Class A vacancy sits near 14%, while older Class B and C buildings are facing much higher vacancy rates of about 24%. Sublease availability has decreased by 1.3M sq-ft this quarter, and with just 1.4M sq-ft under construction (only 23% pre-leased), new options remain limited. Little new supply is expected before 2027, and major completions could be as far out as 2032, meaning the gap between financing for premium spaces and older properties is likely to widen. These trends matter whether you’re an investor, owner, or tenant in Montreal, Laval, or Laurentides—having a clear strategy and the right guidance is more important than ever as the market continues to shift.
