The Greater Toronto Area office market is showing clear signs of a sustained recovery as we head into mid-2026. According to Avison Young’s Q1 2026 report, the market has seen five consecutive quarters of improvement, with overall availability dropping to 17.6% and vacancy rates falling to 15.7%. Net absorption in the first quarter has already surpassed the annual totals seen in any year since 2017.
As premium downtown towers see tightening inventory, leasing momentum is shifting toward off-core districts like Midtown and the North Yonge corridor. These areas are attracting tenants with competitive rental rates and strong transit connectivity. Additionally, we are seeing a strategic trend of early lease renewals as occupiers look to lock in costs. Beyond leasing, the investment landscape is shifting as more users transition from tenants to owners, particularly in suburban markets. For further details and deep-dives into the data, visit the original report at mpamag.com.
Source: Read the original article
