Buildings in the financial sector are back in demand as more employers mandate staff back in the office.

Power is starting to shift away from office tenants and back to landlords in downtown Toronto as demand for space accelerates.

Toronto office tower landlords are reducing the host of valuable incentives they had been offering for years to lure tenants to empty offices, including several months of free rent and extra cash to build out empty space.

“We are seeing tangible improvements,” said Michael Cooper, chief executive of Dream Office REIT D-UN-T , which has 16 office buildings in the city’s core. “It’s encouraging.”

It is a sharp turnaround from a year ago, when tenants had a plethora of options and were being wooed by brokers and landlords. The availability rate of downtown of

See Full Page