Canada’s office market has marked a full year of recovery following disruptions caused by the COVID-19 pandemic, according to a recent report from CBRE. The vacancy rate for office spaces across the country declined to 17.1 percent in the second quarter of 2026, down from 18.7 percent a year earlier, signaling a gradual but sustained rebound.

Marc Meehan, managing director of research at CBRE Canada, noted that the recovery began in earnest approximately 12 to 18 months ago and is now supported by tangible data. For the first time since the onset of the pandemic six years ago, the market has recorded four consecutive quarters of positive net absorption at the national level.

Net absorption, which measures the amount of office space occupied by tenants compared to the amount vacated, was positive in seven out of 11 major Canadian markets during the second quarter. Nationally, overall net absorption reached 1.2 million square feet. Toronto, Calgary, and Montreal led the gains, each absorbing more than 300,000 square feet of office space during this period.

The resurgence in office occupancy has been partly driven by employers increasingly requiring employees to return to office settings. Last summer, several of Canada’s largest companies, including major banks, announced shifts toward implementing four-day in-office workweeks. Additionally, government institutions at municipal, provincial, and federal levels have taken steps to increase the number of in-office days for their staff.

Looking ahead, CBRE projects the office market recovery will continue through to 2030, suggesting a long-term realignment of office space demand as workplace patterns evolve post-pandemic.