Office vacancies finally retreated
Colliers said that while return‑to‑office policies varied by market and sector, “their cumulative impact is being felt nationwide.” Leasing has become more concentrated in downtown cores, and national net absorption turned positive even as tenants remained selective.
New supply also tightened. Colliers reported “less than 2.0 million square feet currently under development,” compared with an average of 1.8 million square feet delivered per quarter between 2021 and 2023 – a construction pullback that helped vacancies stabilize.
That trend aligned with warnings from Avison Young’s Mark Fieder, who previously told Canadian Mortgage Professional that “the construction cycle is coming to an end. There are no big projects coming in the next few years,” a shift he said would “tighten vacancy” particularly in older Class‑A and A‑minus buildings as tenants ran short of options.
Industrial market moved off the boil
On the industrial side, Colliers said “Canada’s industrial sector experienced a national vacancy rate decline – an outcome not seen since 2022,” with absorption of more than 3.6 million square feet outpacing roughly 3.0 million square feet of new supply.
That cooling, following years of breakneck rent growth and record‑low vacancies, echo other industry tallies: CBRE data showed availability still higher than a year earlier but stabilizing, while rent growth flattened in many hubs.