TORONTO — A new report says the Canadian office vacancy rate dipped last year for the first time since the pandemic as the return-to-office trend accelerated.

The report from CBRE says the national vacancy rate stood at 18 per cent at the end of 2025, down from 18.7 per cent a year earlier.

It says lower vacancy rates come as construction levels for new buildings stood at the lowest in 20 years and new starts hit a record low.

CBRE says vacancy rates have also improved as landlords have moved to either convert or demolish some buildings, a trend that has helped reduce inventory by 2.2 per cent since 2021.

Overall net absorption totalled 2.2 million square feet last year, with Toronto accounting for the vast majority and helping offset negative net absorption in markets like Ottawa and Calgary.

Several of Canada’s big banks pushed to have staff in office more starting last fall, while the Ontario government has mandated employees return to office five days a week as of Monday.

This report by The Canadian Press was first published Jan. 7, 2026.

Ian Bickis, The Canadian Press