Widespread return-to-work mandates are sparking “renewed demand” for workplace area in main Canadian cities, a brand new report signifies.
The report, launched by Royal LePage on Thursday, signifies 2026 will probably be a yr of revival for workplace actual property, which was impacted closely in the course of the COVID-19 pandemic that drove many workers to full-time distant work.
Nevertheless, the report states that the dynamic is shifting, given main employers similar to Royal Financial institution of Canada, Rogers Communications and Starbucks Canada have recalled employees to their company workplaces in 2025 and early 2026, implementing in-office work schedules of three, 4 and 5 days.
Federal workers can even be again within the workplace 4 days per week, starting this summer time.
“Employers are putting higher emphasis on how area can be utilized somewhat than how a lot area they take up, prioritizing layouts that assist collaboration, flexibility and worker expertise. That shift is more and more shaping leasing choices throughout the nation,” stated Matt Jacques, interim common supervisor of Royal LePage Business, in a information launch.
“Whereas hybrid work fashions will stay a part of the equation long-term, rising in-office attendance and clearer office methods are serving to to deliver higher stability to the market.”
Throughout the nation, the workplace actual property sector is advancing at completely different speeds, the report confirmed.
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Some main centres, such because the Higher Toronto Space, are starting to see renewed momentum, whereas others, together with downtown Vancouver and Calgary, proceed to lag or have already largely accomplished their transition again to in-person work environments.
Corporations prioritizing workplaces with premium options
Within the GTA, main firms like Wealthsimple, Lyft and Nvidia secured vital sq. footage in 2025, the report stated.
Corporations are prioritizing environments that assist employee collaboration, provide proximity to Union Station and supply entry to fascinating facilities. Workplace areas that lack these are prone to face ongoing softness.
In Montreal, competitors for bigger, well-located and amenity-rich workplace area will probably be excessive, holding stress on the higher finish of the market, the report confirmed.
Vancouver’s downtown workplace rental market has remained mushy within the post-pandemic interval, with the best stress on bigger workplace buildings as firms cut back their footprints and proceed utilizing hybrid working fashions.
“Consequently, downtown landlords are more and more providing incentives similar to discounted rental charges and prolonged rent-free intervals to draw tenants. In distinction, workplace markets outdoors the town core have seen extra secure progress in rental charges,” stated Raman Bayanzadeh, principal of the CRE funding and improvement workforce with Royal LePage Sussex.
“The silver lining is that present market situations current a compelling alternative for workplace tenants to safe high-quality area in fascinating buildings. Many tenants are being selective and taking a measured method, with extra price-sensitive customers ready for clearer indicators that the market has reached its backside earlier than committing.”
Softness in Ottawa’s market will persist, however solely within the quick time period, as federal public servants will probably be again in workplace come July, the report said. Nevertheless, the federal authorities’s dedication to lowering the scale of the general public service is anticipated to mood the tempo of workplace restoration.
In Calgary, firms are specializing in rightsizing, optimizing and designing areas that improve collaboration and worker engagement, somewhat than a simple return-to-office mandate.
“This shift is clear within the rising demand for premium, productivity-focused areas, alongside the repurposing of older workplace stock. … On the identical time, restrictive parking and accessibility challenges downtown are pushing some workplace tenants to look outdoors the town core, putting stress on suburban vacancies,” stated Maxine Morrison, govt vice-president and actual property advisor with Royal LePage Benchmark.
“Small companies particularly are looking for area that permits them to develop their groups and strengthen firm tradition, whereas workers are more and more valuing visibility to administration and alternatives to collaborate in particular person.”
Calgary’s geographic benefits — notably its proximity to the U.S. border — are anticipated to provide it a aggressive edge over Edmonton, the report added.
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