- 2026 office investment volume in Canada’s six major markets is on pace to exceed the annual totals from each of the past two years by over 40%. Coinciding with this jump in sales volume is the return of the institutional investor. In 2023, institutional investors accounted for only 12% of acquisitions of buildings priced $5 million and up with square footage exceeding 75,000. In Q1 2026, this figure has surged to 64%.
- A major factor behind the heightened activity has been the re-engagement of institutional investors in the market, driven by select pension funds. The catalyst? Greater clarity and acceptance around lower pricing benchmarks among market participants compared to 2020, combined with stronger sentiment and confidence in lease fundamentals for high-quality assets. As a result, institutional owners are re-introducing office assets to the market as they seek to recalibrate their portfolios after an extended holding period amid uncertainty.
- This presents a major buying opportunity for institutional-grade office assets at a time when the leasing market is improving for these core and core-plus assets. Since 2025, fellow institutional players – such as Oxford Properties, BGO, DekaBank, Desjardins, and KingSett – have lined up as buyers. Larger, well-capitalized private investors and family offices such as Pontegadea have also been active, but, overall, private investors, REITs, and owner-users have accounted for a decreasing share of the sales.
- The return of institutional capital to Canada’s office market is a bellwether of the rebound in investor demand for quality, stabilized assets. With buyers snapping up these top-tier, institutionally-managed offices, and no new construction on the horizon, competition for these exclusive assets will likely heat up. First-movers who increased their office holdings in this current window of opportunity stand to benefit most from the gradual recovery of office capital returns. Income returns will likely trend higher, too, as the leasing market tightens among Trophy and upgraded class A buildings, and negotiating leverage strengthens for owners.
Institutional investors are back in the office game
June 15, 2026