Toronto Downtown Office Figures Q1 2026

‒    Overall vacancy decreased by 120 basis points (bps) to 13.4% as Downtown Toronto registered over 2.1 million sq. ft. of net absorption in Q1 2026. This represents the largest quarterly absorption figure in recorded history with Class AAA and A accounting for the majority of space taken.

‒    The overall market recovery is spreading beyond the Financial Core and AAA assets which started these trends in 2025. The margin between these premium assets and the performance of Class A spaces has drastically reduced with Class A vacancy decreasing by 600 bps in the last 12 months.

‒    Large block vacancy continues to decrease significantly with most of the remaining options lying in the Greater Core. That market will see increased activity as demand emanates out of the Financial Core.

‒    With the completion of CIBC Square II the new construction pipeline is quickly dwindling with only 396k sq. ft. of office space set to be completed by 2030. The lack of new supply is increasing demand for office space built in the last four years, with over 340k sq. ft. in net positive absorption activity in Q1 2026.