02/08/2026
Toronto’s Commercial Real Estate Market Is Finally Turning a Corner
* Here’s What It Means for You
Toronto’s commercial real estate market is showing its first real signs of sustained growth since before the pandemic, and the momentum is creating new opportunities for investors, business owners, and professionals planning their next move.
1. Leasing Activity Is Rising Again
For the first time since 2019, more office space was leased than vacated last year. Major market reports from Avison Young and CBRE confirm that stability is returning, and confidence is building across the sector.
2. Return‑to‑Office Is Fueling Demand
Large financial institutions and public‑sector employers are leading the return‑to‑office push. As a result, office availability has dropped from 21.2% to 19.2% year‑over‑year.
CBRE is forecasting $56B in commercial real estate investment this year, a significant jump from $47B.
3. “Trophy” Buildings Are Winning
Companies are competing for high‑quality, amenity‑rich office towers that help attract and retain talent.
Top‑performing buildings share key features:
Direct access to Union Station
PATH‑connected retail, cafés, and services
Fitness centres and wellness amenities
Modern, flexible layouts
Quiet zones and collaboration spaces
If you’re targeting premium space, the window to secure the best options is narrowing.
4. The Market Is Still Uneven — Which Creates Opportunity
Roughly 35 million sq. ft. of space remains available across the GTA.
While top‑tier buildings are thriving, older or less central properties are struggling, and many won’t lease without upgrades.
For investors, this creates value‑add potential. For tenants, it opens the door to aggressive incentives and negotiation leverage.
5. Risks Remain, But Confidence Is Returning
Geopolitical uncertainty and recession concerns are still on the radar.
However, the market is beginning to accept global volatility as the “new normal,” and activity is picking up accordingly.
Looking to Lease, Invest, or Expand in 2026?
Whether you’re:
Securing a professional office
Expanding your business footprint
Evaluating investment opportunities
Exploring value‑add or redevelopment plays
I can help you navigate the shifting landscape and position you for success.
📞 647‑760‑7061
Let’s talk strategy and find the right opportunity for your goals.