Commercial real estate activity expected to rise in 2026 as more workers mandated back to office

"The past two years have been pivotal for the office sector, which has steadily regained momentum following the unprecedented disruption of the pandemic, when downtown cores saw office towers largely empty during lockdown periods. The market is not returning to its pre-pandemic state but showing signs of stabilization."

"Two-thirds of Royal LePage commercial real estate market professionals across the country who were surveyed said they expect demand for office space to modestly increase or stay the same in their respective markets in 2026. Five per cent expect demand will increase significantly."

"While the report said hybrid work models will likely remain part of the long-term equation for many sectors, rising in-office attendance should help bring greater stability to the market."

Royal LePage's 2026 commercial real estate report forecasts gradual recovery in the office sector as companies move away from pandemic-era remote work models. Two-thirds of surveyed commercial real estate professionals expect office space demand to modestly increase or remain stable, with 42 percent anticipating decreased vacancy rates. Montreal has the highest commercial vacancy rate at 5.2 percent, followed by Calgary at 3.8 percent and downtown Vancouver at 3.6 percent. Downtown Toronto shows the lowest vacancy at 2.1 percent. Hybrid work models will likely persist long-term, but increased in-office attendance should stabilize the market. The office sector has steadily recovered from pandemic disruptions when downtown cores experienced significant emptying.

Read at The Globe and Mail