Overview
- A Royal LePage survey finds about two‑thirds of commercial professionals expect office demand to modestly rise or hold steady in 2026, and 42% foresee declining vacancies.
- Federal public servants are scheduled to return to offices four days per week this summer, following multi‑day in‑office mandates by major employers such as Royal Bank of Canada, Rogers Communications and Starbucks Canada.
- Regional performance is uneven, with the Greater Toronto Area gaining leasing momentum while downtown Vancouver and Calgary recover at different speeds and Ottawa expected to firm once the federal schedule takes effect.
- Tenants are prioritizing transit access and premium amenities, illustrated by 2025 GTA leases by Wealthsimple, Lyft and Nvidia, as softer downtown markets like Vancouver use incentives such as discounted rents and rent‑free periods.
- Industrial real estate remains a top performer but has cooled because of trade and tariff uncertainty, with 47% expecting stronger occupier demand this year and a construction slowdown and supply‑chain realignment seen helping rebalance conditions.