By Ian Bickis
The nationwide workplace emptiness charge stood at 18% on the finish of 2025, down from 18.7% a yr earlier, although nonetheless a lot greater than the ten.9% charge on the finish of 2019.
The downward development comes as employers are more and more mandating that employees head again to the workplace. A number of of Canada’s large banks pushed to have workers in workplace extra beginning final fall, whereas the Ontario authorities has instructed workers to return to the workplace 5 days per week as of Monday.
Vacancies are trending down not solely from rising demand from the development, but in addition from little or no new provide coming in the marketplace and the conversion of some present workplace buildings to different makes use of.
New constructing begins, and completions of buildings, hit a report low final yr, mentioned CBRE, whereas lively development ranges for brand spanking new buildings stood on the lowest in 20 years.
The one important constructing below development is the second part of CIBC Sq. in Toronto, slated for completion this yr. CBRE mentioned no different Canadian cities have any significant downtown workplace development underway, whereas suburban development is restricted and conservative.
Whereas the CIBC constructing is absolutely leased, CBRE mentioned that a lot of the restricted new provide that has come to market elsewhere stays vacant.
The plunge in new provide did nonetheless assist result in 2.2 million sq. toes of constructive internet absorption final yr, for a second yr of good points.
“It’s encouraging to see a second yr of robust workplace leasing exercise, despite the fact that the workplace market restoration stays considerably uneven,” mentioned CBRE Canada analysis managing director Marc Meehan in a information launch.
Toronto accounted for the overwhelming majority of internet absorption, serving to offset detrimental internet absorption in markets like Ottawa and Calgary.
Calgary nonetheless noticed its emptiness charge fall although, as landlords took provide off the market by conversions largely to residential use. The town has seen a lot of the workplace conversion initiatives within the nation, a development that has additionally seen buildings transformed to be used within the resort, life sciences and schooling sectors.
Since 2021, Canada has seen about 7.8 million sq. toes in workplace house transformed, in addition to 2.6 million sq. toes demolished, resulting in a few 2.2% discount in stock.
On the finish of 2025, Calgary’s emptiness charge of 25.9% was among the many highest within the nation, whereas London, Ont., stood at 26.2%. Vancouver and Halifax had among the many lowest emptiness charges at 11.6% and 10.7% respectively, whereas Toronto’s charge matched the nationwide common of 18% and Montreal stood at 18.3%.
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Final modified: January 8, 2026
