This study presents the computational architecture of the integrated transport, land-use, and emission (iTLE) modeling system. It incorporates the effects of physical-virtual activity-space interactions within the microsimulation framework, making it a comprehensive tool for predicting travel demand and evaluating the impacts of evolving activity-travel behavior on transport and land-use systems. The model systematically integrates households’ and individuals’ long-term, medium-term, and short-term travel related decisions, and traffic assignment allowing for more reliable estimates of travel demand. Application of the iTLE prototype in the Halifax Regional Municipality (HRM), Canada reveals notable trends, including a reduction in travel time for work activities, highlighting the potential of teleworking as a pragmatic strategy for traffic management. The model’s flexibility is demonstrated through its ability to capture the trade-offs between physical and virtual activity environments, aligning with the intricacies of modern digitalized societies. Integration of iTLE with the traffic assignment system enhances its applicability across diverse urban contexts, streamlining the process of setting origin-destination trip matrices and significantly improving computational efficiency. By systematically coupling the micro-behavioral decision processes, iTLE generates robust estimates of traffic flow, emissions, and energy use, providing reliable insights for sustainable and efficient transportation planning. This study contributes to advancing integrated urban modeling, offering a valuable tool that can be replicable for multiple cities in Canada and beyond.