Market Insights: Q1 2026 Report
Commercial Real Estate Report for Peel, Halton and Hamilton Regions
Economic uncertainty accelerated through Q1 2026 as conflict in the Middle East raised the risk of an oil and gas supply shock, layering new volatility onto an already fragile macroeconomic backdrop.
These forces continued to shape commercial real estate sentiment across Peel, Halton, and Hamilton, reinforcing the widening gap between the more resilient markets in Mississauga and Oakville and the softer conditions emerging in Burlington and Hamilton.
In the office sector, availability in Mississauga and Oakville held steady through the quarter, reflecting a continuation of the balanced demand environment that took shape late last year. Burlington, however, saw availability creep higher, rising from 13.8% to 15.0%. This increase coincides with slower leasing velocity and additional space returning to market, marking a shift in momentum compared with the markets nearby. Hamilton’s office market remains comparatively soft, consistent with its trend over the past year.
Industrial fundamentals told a similar story of divergence. Mississauga and Oakville both experienced modest tightening in availability as demand remained steady and quality space continued to be absorbed. Burlington and Hamilton, by contrast, saw availability rise, suggesting more cautious occupier behaviour and a buildup of supply in these submarkets.
This divergence was also reflected in pricing; weighted average sale prices rose in Mississauga and Oakville, held flat in Burlington, and declined in Hamilton as buyers recalibrated to account for softer leasing conditions.
While the path forward for the broader economy remains uncertain and highly sensitive to geopolitical developments – particularly potential energy‑market volatility – periods like this often create openings for well‑capitalized market participants. With pricing adjusting in several markets and availability rising in others, Q1 2026 may present attractive entry points for investors and occupiers positioned to take advantage of evolving market conditions.
