While shifting economic conditions remained a key theme through Q2 2026, the commercial real estate sectors across Peel, Halton, and Hamilton showed signs of stabilization and, in some sectors, early recovery. Broader economic factors continue to influence occupier and investor decision-making. Market performance during the quarter suggested improving confidence, particularly within the office sector.
Office market fundamentals strengthened across most major markets. Positive absorption was recorded in Mississauga, Oakville, and Burlington, reflecting renewed leasing activity and a gradual return of tenant demand. Hamilton was the lone exception, posting negative absorption and continuing to face challenges associated with slower occupier activity. Despite these headwinds, office sale pricing increased in every market except Hamilton, indicating continued investor confidence in well-located office assets and supporting the view that the sector may be entering the early stages of a broader recovery.
Industrial market conditions remained comparatively stable through the quarter. While several markets recorded modest gains in absorption and occupancy levels, overall market indicators changed little from Q1. Mississauga experienced negative absorption; however, this was largely attributable to several large availabilities coming up rather than a significant deterioration in tenant demand. Across the region, industrial sale prices trended slightly upwards, with Burlington standing as the only market where average pricing softened slightly from the previous quarter.
As economic conditions continue to evolve, the resilience displayed across both office and industrial markets highlights the strength of the region’s commercial real estate market. The improving office outlook, combined with stable industrial performance and rising sale values, suggests that Q2 2026 may mark the beginning of a more constructive period for occupiers, investors, and owners alike.
