The Globe and Mail reports in its Wednesday edition that Canada's office real estate market is starting to recover after years of employers shedding space in favour of remote work. In a Globe special, Daina Lawrence writes that while some major cities are seeing increased leasing activity, many investors remain cautious about the sector, taking a wait-and-see approach, particularly in publicly traded real estate investment trusts. Although the sector is still recovering from the COVID-19 pandemic, it is now facing the new threat of artificial intelligence. "AI threatens to hollow out white-collar demand just as the sector was finding its post-COVID footing," says a research note from BMO Capital Markets while arguing the bear case may be overstated. According to commercial real estate firm CBRE, office vacancy in Canada remained elevated, at roughly 18 per cent in the fourth quarter of 2025, compared with about 10.9 per cent in 2019. But the market appears to be stabilizing, with more office space leased than vacated in 2025 for the second consecutive year. Allied Properties REIT and Dream Office REIT have faced considerable pressure in recent years as the sector adjusts to weaker demand and higher borrowing costs.