A new report reveals that downtown London's office space vacancy rate dropped to 25% in the second quarter of 2026, with more than 82,000 square feet now occupied. The data, released by CBRE, indicates a full-year recovery trend since the pandemic disruption began.
Key Findings from the CBRE Report
The vacancy rate decline from previous quarters marks a significant milestone for the downtown core. According to CBRE, the absorption of over 82,000 sq. ft. reflects renewed demand for office space, driven by businesses returning to in-person operations. The report notes that the core has carried the entire city's office market recovery.
Impact on the Local Economy
Lower vacancy rates are expected to boost local businesses, including restaurants and retail, that rely on office worker foot traffic. Real estate experts suggest that the trend could lead to increased property values and further investment in downtown infrastructure.
Comparisons to National Trends
Nationally, office markets are also showing signs of recovery, but London's downtown performance outpaces many Canadian cities. The CBRE report highlights that suburban office vacancies remain higher, emphasizing the unique pull of the urban core.
Future Outlook
With the vacancy rate now at 25%, analysts predict continued improvement through the end of 2026, barring any major economic shifts. The return-to-office mandates by federal and provincial employers are cited as a contributing factor to the increased occupancy.
