Ottawa Office Market Report

Public sector influencing office outlook. In April, the federal government released its 2024 budget, which committed $1.1 billion to trim its office lease obligations. As the nation’s capital, Ottawa will be disproportionately affected by these right-sizing measures. The region could see a further deterioration in office fundamentals over the short term as a result. However, when applicable, the fed plans on converting these obsolete properties into affordable housing and student rentals. These efforts will remove underutilized stock from the city’s existing inventory. In addition, Ottawa recently announced a new mandate requiring federal workers to return to the office at least three days a week. While this measure is likely to receive pushback, the combination of falling inventory and a clearer outlook on public sector space utilization could cause Ottawa’s office market to show early signs of stabilization over the coming months and into 2025.