After years of stalled leasing and high vacancies, Toronto's once-thriving office market might finally be inching toward recovery and could even see a meaningful rebound by 2026, according to a new industry report. A new national outlook from real estate services firm Avison Young paints an upbeat picture for Canada's commercial real estate sector as we head into the new year. "Following a difficult 2025, fundamentals are looking up across Toronto's commercial real estate market for 2026," the report reads, noting that out of the Avison Young professionals surveyed, 74 per cent think activity will be up in 2026. Despite this, the office market's recovery will likely not be evenly distributed, with trophy office assets as well as A-class office buildings, which already maintain low vacancy rates, standing to benefit the most from renewed leasing activity. Those who prioritize key amenities and inducements – including walkability and ready access to transit – as part of their workplace strategies will benefit in 2026," the report reads.