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Sustained leasing momentum reinforces a structural market reset
Toronto’s office market entered 2026 continuing to demonstrate resilience, with fundamentals reflecting a sector that has moved beyond transition into a structurally transformed market. Leasing activity totaled 2.9 million square feet (msf) in Q1 2026, exceeding the five-year quarterly average and increasing by 1.0 msf year over year. This sustained level of activity reflects persistent tenant demand, with activity concentrated in amenity-rich, transit-oriented Class A assets within the Central Business District (CBD), underscoring an entrenched flight to quality.