Office Poised for a Comeback in 2026

In the latest episode of Building Blocks, Craig England, Vice President, Portfolio Management and Steven Marino, Executive Vice President, Portfolio Management look back on 2025’s winners, explain what’s shifting in 2026, and share the signals they’re watching – from leasing momentum to macro policy moves.

Both agree that grocery-anchored retail was the top-performing asset class last year. Looking ahead, they anticipate that office properties will take the lead in 2026, driven by significant leasing activity and a cumulative reset in property values.

Steven highlights three key reasons for his optimism about the office sector’s resurgence: attractive valuations following a 16% market correction, tightening fundamentals due to a slowdown in new development, and favourable debt market conditions enabling positive leverage.

The conversation also covers broader themes shaping the market, including trade negotiations, election outcomes, immigration policy, economic productivity and transaction activity. Addressing investor concerns, Steven underscores the importance of a long-term perspective, emphasizing real estate’s ability to diversify portfolios, hedge against inflation and deliver resilient returns – especially when combined with disciplined management strategies.

Curious to hear more? Don’t miss the latest episode of Building Blocks – now available. Tune in for insightful analysis and expert perspectives on what’s driving the office market’s comeback in 2026.