FIGURES|TORONTOSUBURBANOFFICE|Q42025CBRE

Suburbanmarketendstheyearwith

strongestresultssinceQ32024

20.7%188K203K$18.18

VacancyRateSFNetAbsorptionSFUnderConstructionAvg.NetAskingLeaseRate($PSF)

Note:Arrowsindicatechangefrompreviousquarter.

ExecutiveSummary

-Theoverallsuburbanvacancyratedecreased50basispoints(bps)quarter-over-quarterfrom21.2%to20.7%withthemostsignificantleasingactivityoccurringintheNorthYongesubmarketwhichrecorded129,000sq.ft.ofpositivenetabsorption.

-Inrecentmonths,theGreaterTorontoArea(GTA)suburbanofficemarkethasremained

largelyflat,withonlyahandfuloflargetransactionscompleted.Thiscontinuesthetrendofstablevacancyrates,withoverallvacancyremainingwithinan80bpsrangeforeleven

consecutivequarters.

-Recentreturn-to-officeinitiatives,whichhavedrivenjumpsindemandinthedowntown

submarket,arebeginningtoextendintoadjacentareas—particularlytheNorthYongenode.However,thistrendhasyettoreachtheTorontoWestandEastsubmarkets,bothofwhichexperiencedmarginalincreasesinvacancyrates.

-Officepropertysalevolumescontinuedtodeclineinthepreliminaryfullyear2025numberswithonly$224millioninsuburbanofficeassetsgreaterthan20,000sq.ft.beingsold.Thismarksafurtherdeclinefromthe$661millionfigurefor2024andiswellbelowtherecent

highofjustunder$2.0billionrecordedin2018.

FIGURE1:SuburbanGTAOfficeSupplyandDemand

NetAbsorptionandNewSupply(MSF)VacancyRate(%)

1.0

0.5

0.0

-0.5

-1.0

-1.5

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2020

2021

2022

2023

2024

2025

30.0%

15.0%

0.0%

-15.0%

-30.0%

-45.0%

NetAbsorptionNewSupplyVacancyRate

Source:CBREResearch,Q42025

1CBRERESEARCH?2026CBRELimited

FIGURES|TORONTOSUBURBANOFFICE|Q42025

2CBRERESEARCH?2026CBRELimited

Vacancyseesmilddeclineamiddiverseresultsacrosssubmarkets

TheTorontoNorthsubmarketrecordeditsstrongestquarterofpositivenetabsorptionsinceQ42023anditsstrongestfullyearperformancesince2019.ThisresultwasprimarilydrivenbyleasingactivityoflargeblocksinClassApropertiesintheNorthYongenodeincluding75,000sq.ft.takenbyTenstorrent,27,000sq.ft.takenbyWeWorkat5000YongeStreetand28,000sq.ft.takenbyFourSeasonsHotelsat20YorkMillsRoadonashort-termlease.

TheTorontoEastsubmarketalsoendedtheyearstrongest,recording162,000sq.ft.ofpositivenetabsorptiondrivenbysignificantbutconcentratedleasingactivityinClassAproperties.ThesubmarketrecordeditsstrongestquarterofpositivenetabsorptionsinceQ12020,andits

strongestfullyearresultsince2019.

TheTorontoWestofficesubmarketrecordedanotherstablequarter,withoverallvacancy

remainingvirtuallyunchangedat18.2%.Thisalignswithbroadersuburbantrendsasreturn-to-officemandatescontinuetoinfluencetheGTA.Whilethesuburbanmarketoverallsawaslightreboundintermsofpositivenetabsorption,TorontoWestexperiencedamodestdecline,

particularlywithinClassAandClassCassets,reflectingaslightvariationcomparedwiththeNorthandEastsubmarkets.

Despitethis,vacancyinTorontoWestremainswellbelowitshighsof20.9%inQ12023.Rateshavetrendeddownwardsincethen,reachingitscurrentlowpointinQ42024.ThissustainedimprovementislargelydrivenbystrongleasingactivityinkeynodessuchasOakville,

Burlington,AirportCorporateCentre,andAirportStrip,whichhavecontributedsignificantlytotheoveralldecline.

FIGURE2:Q42025BreakdownofNetAbsorptionbySubmarket(000sSF)

FIGURE3:Q42025SizeDistributionofSuburbanMarketActivity(000sSF)

450

400

350

300

250

200

150

100

50

0

250

200

150

100

50

0

-50

-100

-150

WestNorthEast

0-5K5-10K10-15K15-20K20-25K25-50K>50KOn-MarketSpaceOff-MarketSpace

wClassAClassBWClassC

Source:CBREResearch,Q42025

FIGURE4:DeclineinVacancyRatefromPost-2019High(%)

Source:CBREResearch,Q42025

15.0%17.5%20.0%22.5%25.0%27.5%30.0%

—-Post-2019High

Q42025

Source:CBREResearch,Q42025

FIGURES|TORONTOSUBURBANOFFICE|Q42025

3CBRERESEARCH?2026CBRELimited

RentalratesconvergeintheNorthandEastsubmarkets

Overthepastfiveyears,rentalratesacrossGTAsubmarketshaveshownabifurcationbetweenDowntownandSuburbanofficenodes.Downtownrentshavelargelystagnated,remaining

withinanarrow$0.75bandaround$33.00persq.ft.ThistrendwasprimarilydrivenbytheCOVID-19pandemicandprolongedwork-from-homemandates.Inthecomingquarters,

Downtownratesareexpectedtotrendupwardasmoreorganizationstransitionbacktoin-personwork.

Suburbanmarkets,includingtheNorth,East,andWest,consolidatedafterthepandemicand

havedemonstratedresiliencewithpositivegrowthtrends.Amongthese,theEastsubmarket

hasledtherecovery,postingacompoundannualgrowthrate(CAGR)of3.4%onaverage,risingfrom$14.56to$17.22persq.ft.overthecourseoffiveyears.Incontrast,theWestandNorth

submarketshaveexperiencedmarginalgrowth,withCAGRsjustshyof2%onaverage,keepingpacewithinflation.

Officebuildingsalesvolumecontinuesdecline

Basedonpreliminary2025numbers,thevolumeofofficebuildingsbeingsoldinthesuburbanGTAhascontinueditsnearlineardeclinewithonly$224millionofsalevolumeoccurring,downfromarecentpeakofjustunder$2.0billionin2018.Prospectivepurchasersremainscarceandvendorsofsuburbanofficepropertieshavenotsufficientlyloweredtheirpriceexpectations.

Thishasledtoassetsonlychanginghandsifthereisaspecificmotivatingfactorforeithertobuyerorsellertoadjusttheiracceptablepriceorifthepropertyisbeingsoldunderdistress.

Thevolumeandvalueofdealsislikelytobehigherin2026assomelandlordsandprospectivepurchasersbecomemorecertainoftheoutlookfortheirassetsandbridgethegaponprice

expectations.

FIGURE5:SelectedSubmarketAskingRentalRates(PSF)

$35.00

$30.00

$25.00

$20.00

$10.00

$15.00

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2020

2021

2022

2023

2024

2025

Downtown一WestNorthEast

Source:CBREResearch,Q42025

FIGURE6:Volumeof>20,000sq.ft.SuburbanGTAOfficeSales($M)

SalesVolume($M)Average$PSF

$2,000

$1,500

$1,000

$500

$0

$400

$300

$200

$100

$0

20152016201720182019202020212022202320242025*

mmSaleVolume($M)Average$PSF

*Preliminary

Source:AltusGroupJanuary5,2026;CBREResearch,Q42025

FIGURES|TORONTOSUBURBANOFFICE|Q42025

4CBRERESEARCH?2026CBRELimited

FIGURE7a:Q42025OfficeMarketStatistics

Submarket

Inventory

(SF)

Vacancy

Rate

(%)

Sublet

Space

(%of

Vacancy)

Availability

Rate(%)

NetYTDNet

AbsorptionAbsorption

(SF)(SF)

New

Supply

(SF)

Under

Construction

(SF)

Asking

Net

Rent

(PSF)

Bloor/Islington

1,750,771

14.5%

9.6%

22.9%

2,448

-35,206

0

0

$18.81

427Corridor

1,856,618

24.8%

12.7%

26.5%

9,634

-2,295

0

0

$16.79

AirportStrip

3,330,753

20.1%

11.8%

21.1%

-10,373

-40,295

0

0

$12.47

AirportCorp.Centre

7,304,012

21.4%

23.4%

22.5%

-53,399

50,461

0

0

$19.15

MississaugaSouth

1,450,312

5.5%

34.4%

5.5%

-14,511

-6,146

0

0

$16.87

CityCentre

3,752,801

23.1%

2.4%

26.0%

-7,522

-44,780

0

0

$18.28

Hwy10/Hwy401

4,303,077

12.4%

12.6%

13.2%

60,993

41,060

0

0

$19.67

Meadowvale

4,474,354

22.8%

8.4%

23.6%

-218,204

-235,482

0

0

$19.75

Brampton

1,049,000

4.9%

65.7%

9.2%

-13,991

-48,988

0

0

$17.96

Oakville

4,644,086

15.0%

17.9%

16.5%

30,001

125,155

0

27,662

$18.43

Burlington

3,790,349

17.9%

13.9%

18.4%

64,353

58,708

0

0

$16.29

West

37,706,133

18.2%

14.3%

19.8%

-150,571

-137,808

0

27,662

$17.84

Scarborough

3,544,513

27.3%

21.1%

27.3%

90,686

98,039

0

0

$15.40

MarkhamN./R.Hill

8,068,046

19.8%

1.3%

20.3%

53,129

62,460

0

0

$19.27

MarkhamSouth

4,081,381

17.8%

2.8%

18.0%

-36,491

-58,801

0

0

$16.64

E.York/D.MillsS.

2,552,330

31.9%

2.8%

31.9%

38,955

43,144

0

0

$16.04

DonMillsNorth

2,792,656

23.7%

3.5%

23.7%

-23,447

-94,708

0

0

$17.31

ConsumersRoad

3,632,790

31.5%

13.0%

31.5%

-25,053

-66,613

0

0

$15.79

G.Baker/Vic.Park

1,510,904

24.6%

2.2%

28.1%

63,974

66,660

0

0

$17.92

East

26,182,620

24.0%

7.1%

24.4%

161,753

50,181

0

0

$17.22

NorthYonge

7,760,524

28.7%

10.9%

29.7%

129,772

77,327

0

175,000

$22.12

NorthYorkWest

2,166,759

10.3%

0.4%

10.3%

9,148

-41,505

0

0

$12.86

Vaughan

3,195,743

11.2%

17.9%

11.9%

38,242

50,334

0

0

$19.88

North

13,123,026

21.4%

11.0%

22.3%

177,162

86,156

0

175,000

$21.32

Suburban

77,011,779

20.7%

10.9%

21.8%

188,344

-1,471

0

202,662

$18.18

Source:CBREResearch,Q42025.

FIGURE7b:Q42025OfficeMarketStatistics,con’t

Submarket

Inventory

(SF)

Vacancy

Rate

(%)

Sublet

Space

(%of

Vacancy)

Availability

Rate(%)

NetYTDNet

AbsorptionAbsorption

(SF)(SF)

New

Supply

(SF)

Under

Construction

(SF)

Asking

Net

Rent

(PSF)

FinancialCore

27,426,732

9.0%

14.4%

12.5%

272,647

1,377,538

0

0

$38.07

GreaterCore

21,465,661

17.0%

11.1%

18.9%

562,510

576,775

0

1,430,000

$32.10

DowntownSouth

10,200,415

9.2%

22.1%

9.5%

124,897

261,655

0

0

$35.69

DowntownNorth

6,483,449

13.0%

14.1%

17.9%

7,595

44,369

0

211,589

$28.14

DowntownEast

3,754,761

29.6%

30.6%

31.1%

-46,081

-15,132

0

80,966

$34.75

DowntownWest

9,606,227

27.1%

9.4%

28.8%

264,489

396,128

0

103,334

$35.29

LibertyVillage

2,610,704

23.6%

25.7%

26.7%

17,923

-8,819

0

0

$26.97

Downtown

81,547,949

15.0%

15.0%

17.5%

1,203,980

2,632,514

0

1,825,889

$34.29

Bloor/Yonge

6,953,384

25.9%

32.8%

27.1%

-159,604

-101,132

0

24,388

$26.98

St.Clair/Yonge

2,194,054

13.3%

3.7%

17.1%

-21,075

8,435

0

0

$28.62

Eglinton/Yonge

4,520,506

17.1%

7.0%

18.2%

-12,357

111,601

0

0

$18.79

Midtown

13,667,944

21.0%

22.8%

22.6%

-193,036

18,904

0

24,388

$25.12

Central

95,215,893

15.9%

16.5%

18.2%

1,010,944

2,651,418

0

1,850,277

$32.44

GTATOTAL

172,227,672

18.0%

13.6%

19.8%

1,199,288

2,649,947

0

2,052,939

$26.72

Source:CBREResearch,Q42025.

FIGURE8:Q42025NotableSuburbanLeaseTransactions

Submarket

Address

Tenant

Size(SF)

Class

DealType

Scarborough

300ConsiliumPl

IntactInsurance

82,883

A

New

CityCentre

3RobertSpeckPkwy

FidelityInvestments

80,786

A

New

NorthYonge

5000YongeSt

Tenstorrent

75,000

A

New

MarkhamN/RichmondHill

1380RodickRd

StandardBioToolsCanada

42,753

A

Extension

Hwy10/401

7070DerrycrestDr

Survalent

42,000

A

New

Source:CBREResearch,Q42025.

FIGURES|TORONTOSUBURBANOFFICE|Q42025

MarketAreaOverview

Definitions

Inventory:Acompletelistofofficeassets,displayedbytotalsq.ft.,trackedbyCBREintheGreaterTorontoArea.

Submarket:AsubdivisionoftheGreaterTorontoAreasubmarketwithdefinedboundariesrepresentingvariousnodes

andregions.NetAbsorption:Ameasureofthenetchangeinoccupiedspaceoveragivenperiodoftimeexpressedin

sq.ft.NetRentalRate:Theaskingrentalratenotincludingtaxesandoperatingcostsexpressedonadollarspersq.ft.

perannumbasisweightedbycurrentlyavailablesq.ft.AdditionalRentalRate:Ashareofoperatingexpensesincludingtaxesmaintenanceandinsuranceexpressedonadollarspersq.ft.perannumbasisweightedbycurrentlyavailablesq.ft.VacancyRate:Thepercentageoftotalofficespaceinagivenareathatiscurrentlyvacantandavailablefor

occupanc