The downtown office vacancy rate in London increased at the end of 2025, maintaining its position as the least attractive destination for employers in Canada. According to CBRE, 31.5% of available office space in downtown London was unoccupied in the final quarter of the year, up from 30.6% in the previous quarter. The downtown area encompasses about 75% of the city’s office real estate.
CBRE attributed the rise in vacancy rates to the relocation of the Workplace Safety and Insurance Board (WSIB) from the downtown core to the east end of the city. Greg Harris, CBRE’s vice president and broker, noted that WSIB’s move to Tartan Drive significantly contributed to the increase in vacancy.
Despite London’s downtown office vacancy rate remaining the highest among major Canadian cities tracked by CBRE, Harris expressed optimism that there would not be substantial further increases. He mentioned the possibility of fluctuations but anticipated a positive trend in the future.
Harris explained that the increase in vacancy was primarily due to companies downsizing to accommodate remote work. However, with provincial government mandates and companies like TD requiring employees to return to the office, there may be a shift towards companies needing more office space, ultimately lowering the vacancy rate.
The recent move of WSIB from downtown Toronto to east London was criticized by Ward 13 Coun. David Ferreira, especially as the provincial government is implementing a back-to-office mandate for government workers. Ferreira expressed disappointment in WSIB’s decision to leave the downtown core despite having suitable accommodations there.
Most of the vacant office spaces in London’s downtown are in older, less desirable Class B and C buildings, while the vacancy rate for Class A buildings stands at 19.8%. The city has initiated programs such as office-to-residential conversions to revitalize the core and attract new tenants.
Harris noted that the office-to-residential conversion program has been effective in removing older, less appealing office spaces from the market, thus reducing the vacancy rate. Ferreira emphasized the importance of reducing office vacancies in the upcoming Downtown Master Plan, aiming to bring more people and tenants back to the offices.
Overall, London’s office vacancy rate is 26.2%, with 10.8% of office space in the suburbs unoccupied, as reported by CBRE.
