These figures are reflective of a slow but steady recovery in the Canadian office leasing landscape during 2025, and came despite Allied selling several assets as part of a previously announced campaign to reduce debt.

At the end of 2025, Allied’s occupied and leased area was 85.3 per cent and 87.4 per cent, respectively, steady from Q4 2024 when those figures were 85.9 per cent and 87.2 per cent, respectively. Allied reported 801,000 square feet of leasing activity in the second half of 2025, its strongest performance since 2020.

“While the return to historical occupancy levels has taken longer than expected, we’re seeing an increase in demand and limited new supply on the horizon,” Williams said in the release accompanying Allied’s financial reports. “Against this backdrop we’re executing an action plan to strengthen our balance sheet and improve financial flexibility.

“This includes our previously announced distribution reset, advancing a growing non-core disposition pipeline, and pursuing a $500 million equity offering. These put Allied in a position of strength to benefit from the market recovery in 2026 and beyond.”

Allied had already reduced its distributions by 60 per cent, to 72 cents annually or six cents per month, in December.

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