10/14/2026
Nationally, Q3 was another step in the office recovery. CBRE reports net absorption of 2 million sq. ft. — a fifth straight positive quarter, with 9 of 11 markets positive and downtown vacancy falling in eight markets, led by Toronto, Calgary, Ottawa and Halifax.
Sublease space told the clearest story: down 1.3 million sq. ft. in the quarter, the largest drop since 2005, and now roughly 50% below its peak from more than three years ago. Supply stayed tight too, with no notable new completions in Q3 and full-year new supply tracking around 2.3 million sq. ft., well below the recent five-year average.
Vancouver was the outlier among major cities. Downtown vacancy rose to 13.1% in Q3, the highest in 22 years, driven by lease expirations including two large vacated blocks, with consolidation by a single tech tenant cited nationally. A CBRE analyst projection reported this week suggests the trend could reverse in 2027, with vacancy falling toward 10% if leasing reaches half its historical pace.