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Toronto's dying office market could see major rebound in 2026

After years of stalled leasing and high vacancies, Toronto's once-thriving office market might finally be inching toward recovery and could even see a meaningful rebound by 2026, according to a new industry report. A new national outlook from real estate services firm Avison Young paints an upbeat picture for Canada's commercial real estate sector as we head into the new year. The firm surveyed nearly 200 of its professionals across the country, with an overwhelming 97 per cent saying that they expect market activity to remain steady or even improve in 2026. Across the country, the report notes that retail is also expected to see some resurgence, thanks to return-to-office mandates, which will inevitably boost downtown foot traffic and support ground-level businesses. "Following a difficult 2025, fundamentals are looking up across Toronto's commercial real estate market for 2026," the report reads, noting that out of the Avison Young professional...


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