Overview
- CBRE reports 2.2 million square feet of net absorption in 2025, marking a second straight year of leasing growth.
- The “flight to quality” intensified as downtown Class A vacancy fell to 15.4% and trophy buildings reached 10.4% nationally, versus 25.4% in Class B/C space.
- Companies removed 3.2 million square feet of sublet space during 2025, reducing sublease availability to about 11.4 million square feet.
- Eight office-to-residential conversions in Q4 alone eliminated more than one million square feet, while just 2.8 million square feet are under construction nationwide with roughly 70% pre-leased.
- Local outcomes diverged: downtown Vancouver rose to 12.8% vacancy, a two-decade high yet the lowest among major cores, Calgary remained near 30.4% amid energy-sector subleasing, and Winnipeg hit 18.6% as tenants shifted to newer buildings.