After years of uncertainty, the Toronto office market is showing signs of stabilization. 2026 is expected to bring positive absorption, especially in high-quality buildings that support hybrid work.

1. Flight to Quality
Companies prefer modern spaces with amenities, transit access, and flexible layouts.

2. Hybrid Work Adjustments
Tenants are downsizing but upgrading — less space, better location.

3. Sublease Space Stabilizing
Sublease inventory is gradually being absorbed, helping balance the market.

Businesses exploring new space should review available office leasing opportunities in Toronto

• Landlords are still offering incentives
• Longer lease terms bring better deals
• Early negotiation gives leverage

Working with a tenant representation specialist can secure favorable terms : Contact Allen Mayer or Book Consultation

Investors are watching:

• Class A downtown towers
• Buildings near transit lines
• Properties with upgrade potential

Office assets with strong locations remain attractive long term.

• Yes, demand is improving for high-quality office space, especially in central locations.

• Premium buildings may hold rents steady as demand shifts toward quality space.