Toronto Suburban Office Figures Q1 2026

‒    The overall suburban vacancy rate grew 20 basis points (bps) quarter-over-quarter from 20.8% to 21.0%. The most significant leasing activity occurred in the Toronto North submarket, which recorded 18,000 sq. ft. of positive net absorption, while all other nodes experienced negative net absorption.

‒    Historically, suburban market momentum typically starts the year on a subdued note, reflecting slower decision making as occupiers reassess space needs. Leasing volume wavered across all submarkets this quarter, spreading to lower quality Class B and C assets first. However, vacancies remain relatively stable as tenants revert to a wait-and-see approach.

‒    Office property sale volumes saw renewed enthusiasm with preliminary 2026 numbers showing over $180 million closed this quarter, reaching almost half of the total sales volume in the entirety of 2025. This was marked by a landmark purchase of the Yonge Corporate Centre led by Europro, totaling over 1 million sq. ft. of Class A office space.