Canada's office market posts full-year recovery, leaving pandemic woes behind

Canada's office market shows strong recovery with vacancy rates dropping to 17.1% and positive net absorption for four consecutive quarters. Top-tier office spaces led the rebound, with premium vacancy near pre-pandemic levels. Demand is expanding to Class A and B spaces as older assets undergo repositioning. New construction is minimal, with a historically low supply pipeline. Office conversions and demolitions have reduced inventory by 2.6%, improving market competitiveness. Full recovery is expected by 2030.