Figures
Toronto Suburban Office Figures Q2 2026
Suburban market gains momentum
July 13, 2026 5 Minute Read
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- The overall suburban vacancy rate fell 50 basis points (bps) quarter-over-quarter from 20.7% to 20.2%. The most significant leasing activity occurred in the Toronto West submarket which recorded approximately 210,000 sq. ft. of positive net absorption. The overall net asking rent in the suburban market increased by $0.13 per sq. ft., or 0.7%, quarter-over-quarter from $18.25 per sq. ft. to $18.38 per sq. ft..
- Absorption in the suburban market was driven by Class A leasing, most notably in Toronto North and Toronto East submarkets. As employers continue to advance return-to-office policies, demand for high-quality Class A space is poised to strengthen and outperform Class B and Class C assets.
- Vacancy rates across the Downtown and Suburban submarkets show a widening spread from lows of 230 bps in Q4 2024. The continuing return-to-office push has impacted Downtown leasing momentum significantly, reducing vacancies steadily over four quarters. In Q2 2026, the Downtown submarket vacancy rate declined by 40 bps quarter-over-quarter, while the overall suburban vacancy rate fell by 50 bps, resulting in a vacancy spread of 710 bps.