TORONTO – A new report from CBRE says Canada’s office market has officially experienced one full year of recovery since the COVID-19 pandemic disrupted the sector.
CBRE says Canada’s office vacancy rate stood at 17.1 per cent in the second quarter, down from 18.7 per cent a year earlier.
The report says net absorption rates were positive in seven of 11 Canadian markets, with overall net absorption reaching 1.2 million square feet, led by Toronto, Calgary and Montreal.
Marc Meehan, CBRE Canada research managing director, says the first stage of the office recovery occurred in “trophy buildings” with demand trickling down to the next-best office spaces.
The report says the vacancy rate for so-called trophy office buildings is only one per cent higher compared with before the COVID-19 pandemic at 9.4 per cent.
Meanwhile, CBRE says new office construction starts remain low, with only one new project started in the second quarter.
This report by The Canadian Press was first published July 6, 2026.
