The period of stagnation in Canada’s commercial real estate market is officially over. According to Avison Young’s 2026 Mid-Year Outlook, 96% of industry experts expect market activity to hold steady or increase throughout the remainder of the year. Toronto remains at the forefront of this recovery, boasting a 6.00% cap rate for Class A office space and an ultra-tight 3.90% cap rate for high-density urban multifamily properties.
Notably, Toronto is leading a national trend of four consecutive quarters of positive office absorption. As artificial intelligence continues to reshape space requirements, demand for high-quality assets has reached a level not seen in years. While developers are shifting their focus from cost concerns to broader risk management, the data suggests that for investors and occupiers, the ‘wait and see’ approach has been replaced by a focus on executing new opportunities. Read the full report at https://www.mpamag.com/ca/specialty/commercial/the-wait-is-over-canadas-commercial-market-picks-up-pace/583483.
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