Canada’s Office Vacancies Ease Through 2028 | Liana Michina LianaMichina.com

It looks like Canada’s office market is heading for a gradual recovery, with vacancy rates projected to ease through 2028. Forecasts now expect national office vacancy to drop to around 9% by the end of 2027, and settle in the high-8% range by the end of 2028—an improvement from previous predictions. This shift isn’t driven by a sudden jump in demand; instead, it’s the result of a much slower construction pipeline, with new office space deliveries forecast to fall to just 200,000 sq-ft. Absorption is expected to stay modest by historical standards, averaging 1 million sq-ft quarterly in 2027 and rising to 1.75 million sq-ft in 2028. Notably, higher-end office spaces are expected to lead the way, with rent growth near 4%, compared to about 2% for other offices. Of course, these gains come with the usual uncertainties—trade, fuel, and population trends all remain factors to watch. As someone who helps buyers, sellers, and investors navigate opportunities in Montreal, Laval, and Laurentides, I know how important it is to interpret these market shifts for your next move.