Ottawa Office Market Report

Ottawa offers conversion potential. Ottawa’s office inventory has increased at a rate well below the national level, helping mitigate supply- side pressures some other major markets face. The region has also seen investor interest in office-to-residential conversions. In most cases, conversion projects create feasibility challenges due to higher costs and improper floor plates; however, investors have been able to find opportunities here. Not only does the metro have an older office stock with smaller buildings that are more suitable for conversion, but the city has also implemented new policy to aid these projects. In late 2023, the city approved measures to expedite the conversion process with more flexible zoning, saving time and costs. A financial incentive is also being piloted, in which fees are reduced to help streamline development. All together, these initiatives and ongoing projects will help office fundamentals and also add much needed housing supply.