Canada Office National Report

Recovery to resume after early-year disruptions. After six consecutive quarters of rising space demand, preliminary data indicates that the office sector is experiencing a setback in the second quarter. The trailing 12-month net absorption declined to 2.7 million square feet, likely driven by a sudden shift in business sentiment amid escalating trade tensions, which halted office footprint expansion nationwide. United States trade policy will remain a key factor shaping the office sector outlook this year. Easing tensions and ongoing trade talks between Canada and the U.S. since mid-April have offered hope that the worst days of tariff threats may now be behind us. The resilience of office-using employment, a supportive policy environment and abating supply-side pressures suggest that the office sector’s recovery could get back on track following a turbulent start to 2025.