Ottawa Industrial Market Report

Local characteristics help metro. Industrial leasing in Ottawa gained momentum last year, as lower interest rates and a more disciplined supply cycle helped stabilize the metro’s vacancy rate. While trade disputes are increasing the risk of an economic downturn in Canada, Ottawa is better positioned than most other markets despite potential spillover effects from slowing global economies. Not only does the metro’s large public sector and university presence help support local consumption, but its industrial sector also caters to more domestic functions. At the same time, manufacturing and agriculture are not overly prevalent in Ottawa, helping cushion the negative impacts of tariffs from both the United States and China. Amid more disciplined supply-side pressures, underlying fundamentals are forecast to largely stabilize in Ottawa’s industrial sector this year. Nevertheless, the rising uncertainties surrounding ongoing trade threats are curbing business confidence, which could temper expansion plans.