Ottawa Office Investment Forecast
Higher-Quality Buildings Receiving the Most Interest from Tenants and Buyers
Regulations ensure temporary cap on vacancy. Ottawa’s office market is largely dependent on a combination of technology, research, co-working firms and government agencies. The presence of internationally renowned companies in the tech sector provides ample future demand prospects, as many corporations within this industry continued expanding during the pandemic. These firms often seek out top-tier space, with some using the health crisis disruption to shift from Class B space to newly vacated or opening Class A space downtown. This led to higher absorption in the central submarkets relative to most other sections of the metro. Suburban leasing activity has been the strongest in Kanata, highlighted by recent signings from Dell Canada and Nanometrics. Meanwhile, the Federal Government is a major office user in Downtown Ottawa, and despite the announcement of a planned 20 per cent space reduction locally, PSPC regulations do not allow these agencies to give space back until their current leasing commitments end, delaying the impacts up to 30 years, by the government’s own estimates.