Return-to-work mandates spark renewed demand for Canadian offices

A Royal LePage report says 2026 could bring a revival in Canadian office real estate as several large employers recalled staff to in-office schedules and federal workers are set to return four days a week beginning this summer.

A Royal LePage report says return-to-work mandates are helping revive demand for office space in major Canadian cities in 2026. The report links that shift to large employers recalling staff to corporate offices in 2025 and early 2026 and to a federal plan for four-day in-office work beginning this summer. It also says employers are prioritizing how space is used to support collaboration and employee experience rather than simply the amount of space. Market conditions are uneven across different cities, shaping leasing and landlord strategies. Key points: - The report identifies 2026 as a year of revival for office real estate that was weakened by pandemic-driven remote work. - Major employers named in the report — including Royal Bank of Canada, Rogers Communications and Starbucks Canada — implemented in-office schedules ranging from three to five days. - In the Greater Toronto Area, the report notes renewed momentum and cites significant space commitments by companies such as Wealthsimple, Lyft and Nvidia in 2025. - Montreal is expected to see strong competition for larger, well-located, amenity-rich offices, while Vancouver’s downtown market remains soft, especially for larger buildings. - Ottawa’s softness is expected to be short term as federal public servants return in July, though the federal government’s plans to reduce public service size may temper recovery. - Calgary firms are focusing on rightsizing and productivity-focused spaces, with some tenants moving outside the downtown core because of parking and access limits. Summary: The report says rising in-office attendance and clearer workplace strategies are helping bring greater stability to the office market, but recovery is moving at different speeds across Canadian cities. Federal employees are scheduled to return to the office four days per week beginning this summer, and leasing activity will likely continue to reflect employer preferences for collaborative and amenity-rich space.