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Trophy assets drive resurgence in CBD activity as return-to-office accelerates
Toronto’s office market strengthened in Q3 2025 with 2.6 million square feet (sf) of leasing, up 1.5 million sf year over year. This surge was propelled by the continued implementation of return-to-office mandates, particularly among financial institutions, professional services firms and technology occupiers. In September, four-day work weeks went into effect for Scotiabank, Royal Bank of Canada, and Bank of Montreal, increasing downtown foot traffic.
Trophy and Class A buildings remained the focal point of leasing activity this quarter as tenants sought state-of-the-art amenities, sustainable design and prime transit access. As top-tier space filled up in the Financial Core, renovated character assets in emerging downtown submarkets began attracting interest from tenants priced out of new construction.