Does 2026 See the Return of the Tenant?

Isn’t it truly time to retire the “return to office” debate. Please say it is. Don’t misunderstand this, no one is lining up to do a massive rewind to 2019 and pretend nothing happened. There is no world where every employee dutifully marches back to cubicle land five days a week. But what is taking shape is something more intentional, a recalibration of how organizations see the space they are investing in. Is it thoughtful, does it engage their people, and is it designed to function the way modern teams need them to? We are only going to see more of this in 2026.

Hybrid work has normalized to three or four in-office days, and since we’re no longer waiting for everyone to come back to the office in that pre-COVID way, this allows corporate real estate teams to make longer term decision about the type of space required including shared amenities. This stability will also create some consistency in the leasing market, especially for office space particularly AAA and AA buildings. Management firms who have invested in tenant flexibility, wellness and experience will emerge as the clear winners in 2026.

A trend that will no doubt continue is the redefinition of the office space. Once a place for solo tasks – see office cubicles – is being redefined as a place for social and team thinking. There has been a clear shift in demand for spaces that support team collaboration, onboarding activities, and innovation. Things that fell by the wayside during the COVID days and immediately afterwards. This shift has resulted in a change in how offices are configured. Neighbourhoods have replaced cubicles, hoteling has replaced assigned seating, café lounges that are as good for meetings as they are for a quick lunch with teammates. There is a renewed emphasis on office wellness, better air quality, acoustics and biophilic design. And it’s not a new thing, it’s long been known that humans work better when the feel connected, supported and grounded.

Even if we are in a reflective mood in terms of investing in tenant wellness, modern tech is steering the way. Data-driven decision-making is reshaping what goes into today’s leases and the conversations around them. Engaged tenants are requesting real-time occupancy insights, smart building features and digital tools that can help support a more inclusive, and productive workspace. This includes a stronger digital infrastructure, consistent Wi-Fi, secure access control, sensors that support space planning and intelligent building systems. Buildings that can demonstrate this have a clear competitive advantage. “Smart” is no longer a nice-to-have, it’s table stakes. And AI-powered platforms are seemingly days away from defining what “Smart” is.

This has touched the tenant experience and will one day define it, but there is some unexpected tenant behaviour that is showing up in leasing conversations. Organizations are looking at a building’s broader ecosystem – prioritizing a strong retail presence, urban character and transit connectivity. They’re also looking for amenities that extend beyond fitness centers and rooftop terraces. These include childcare facilities, wellness rooms, secure bike storage, and even pet-friendly facilities. This is driving landlords to rethink amenities as strategic investments that support workforce attraction and retention. This has become a top priority for employer’s challenges with a hyper competitive job market.

Both landlords and tenants know that none of this comes without a price, so for AAA and AA buildings tenants are willing to pay for quality. This shift is the understanding that this is not an investment in prestige but in operational reliability, energy performance and a shift towards resilience. Tenants want healthy buildings with modern systems, low risk of downtime, credible

sustainability credentials, and transparent performance data. Owners offering this package are commanding higher rents and stronger retention.

There is a “ying” to this “yang” as people return to the office. Older buildings that have not invested either physically or digitally are at the risk. This includes a large swath of mid-tier buildings that are facing this challenge. The question owners and investors are asking whether they should strategically reposition, invest in deep retrofits, flexible floorplates, advanced building systems, sustainability leadership, strong amenities, and a tenant-first operating model. Or do the portfolio owners accept that they will become stranded assets.

Office demand will be the story of 2026, but it will focus on clarity, not recovery. Tenants are returning, but not to a pre-COVID office place. The new version will support collaboration, support culture and performance. The winners will be the building owners who take advantage of this shift in consciousness and respond with office environments that embrace this new vision and make the commute worthwhile.