The 2026 Royal LePage Commercial Real Estate Report includes insights into the industrial and office commercial real estate sectors in major urban centres within Canada.
“Much like the residential real estate sector, broader economic uncertainty has weighed on commercial real estate decision-making in recent years,” said Matt Jacques, interim general manager, Royal LePage® Commercial™. “What’s different heading into 2026 is the growing sense of stability. Businesses are no longer reacting to every economic headline and are instead taking a more deliberate, long-term approach to space planning and investment decisions.
“While caution remains, there is optimism that market conditions are beginning to normalize. As confidence gradually rebuilds, we expect to see more consistency in activity across both office and industrial markets throughout Canada. Regional variations, however, mean this trend will unfold diversely across the country.”
Key highlights:
- A gradual recovery in office leasing activity in major Canadian cities is anticipated for 2026, driven by widespread return-to-office mandates from major employers and the federal government.
- 66% of Royal LePage commercial real estate experts expect occupier demand for office space to modestly increase or hold steady in their market in 2026, and 42% anticipate a decrease in vacancy rates.
- Industrial real estate is expected to remain one of Canada’s strongest-performing commercial asset classes, with 47% of experts expecting occupier demand to increase.
