Canada office vacancy rate slips to 13 percent
Canada’s national office vacancy rate slipped to 13.2% in the third quarter of 2026, according to Colliers’ Q3 2026 National Market Snapshot. The relocation of IG Wealth Management’s headquarters from 447 Portage Avenue to 360 Main Street in Winnipeg will add significant availability to the class B office market in Winnipeg, increasing the vacancy rate from 13.8 percent to 19.1 percent in the third quarter of 2026.
The former headquarters of the company spans roughly 280,904 square feet. Winnipeg’s office market saw a decline of 119,527 square feet in net absorption, pushing the overall vacancy rate to 14.1 percent.
Office Market Trends
The national office vacancy rate decreased to 13.2 percent, a smaller reduction compared to the 30-to-40 basis point quarterly decreases observed in the previous year. The average asking net rent stood at $21.11 per square foot, with rent increases noted in only three out of the 13 monitored markets.
The ongoing office construction pipeline has dropped below 2 million square feet, with little momentum to suggest a turnaround in the immediate future. Toronto’s office vacancy rate decreased by nearly 30 basis points to 10.4 percent, driven by approximately 860,000 square feet of positive net absorption.
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Industrial Market Trends
The national industrial vacancy rate decreased by 20 basis points to 3.1 percent, while availability dropped by 40 basis points to 4.8 percent. Around 9.9 million square feet were absorbed during the quarter, and the available industrial space fell below 100 million square feet for the first time in over a year.
Colliers associates the industrial sector’s performance with the federal Defence Industrial Strategy and the Building Canada Strong initiative. According to the firm, these initiatives collectively represent over $1 trillion in planned public and private investments. Adam Jacobs, Colliers Canada’s research head, stated that Canada’s industrial economy seems poised for a transformation, with commercial real estate playing a key role.
Saskatoon posted the country’s lowest industrial vacancy at 2.1 percent, followed by Toronto and Calgary at 2.2 percent. Quebec City’s industrial construction pipeline is dominated by data centre projects, including QScale’s Q02 expansion in Lévis, Microsoft facilities in Ancienne-Lorette and Charny, and Vantage’s QC24 building.
