Toronto Q3 2026 Office Market Report

Tightening supply strengthens Toronto office fundamentals

Toronto’s office market maintained positive momentum in Q3 2026, supported by steady leasing activity. Overall availability declined for a third consecutive quarter to 14.3%, extending a sustained downward trend from the market's 2024 peak. Class A availability fell further to 10.4%, reflecting a pronounced reduction in higher-quality space. Leasing activity totalled 1.7 million square feet (msf), broadly in line with the five-year quarterly average of 1.6 msf but below the 2.6 msf recorded a year earlier. Continued availability compression alongside normalized leasing volumes points to broader improvement in market fundamentals as cumulative absorption and a shrinking pool of available space reshape supply conditions.

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