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Office Towers Roar Back as Canadian Commercial Real Estate Investment Hits $10.7 Billion
Altus Group's latest quarterly update shows a surprise 158 per cent surge in office investment activity, lifting total commercial deal volume 5 per cent year over year
Published: July 14, 2026
Canada's commercial real estate sector delivered an unexpected bright spot in the first quarter of 2026, according to Altus Group's latest market update. Total investment volume across the country reached nearly $10.7 billion, a modest 5 per cent increase year over year, but the headline number masks a much bigger story unfolding inside the office sector.
Office investment activity surged 158 per cent year over year, an extraordinary rebound for a segment that had been left for dead by many investors after years of hybrid work eroding demand for downtown towers. Analysts at Altus Group note that the jump reflects opportunistic buyers moving in on discounted office assets, betting that the worst of the value correction in the sector has already played out.
The office rebound stands in contrast to the more modest overall growth in commercial deal volume, suggesting that other asset classes, including industrial and retail, grew more slowly or even pulled back slightly during the quarter. That's a shift from the past few years, when industrial property was the undisputed darling of Canadian commercial real estate investors.
The update comes against a backdrop of broader uncertainty for Canadian commercial property, including ongoing trade tension between Canada and the United States that has left some investors cautious about committing capital to new projects. Even so, the first-quarter figures suggest institutional investors are willing to look past short-term volatility if the pricing on offer is attractive enough.
Whether the office rebound proves durable through the rest of 2026 will likely hinge on return-to-office trends at major employers and on how quickly financing costs for commercial borrowers continue to ease.
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