Office: While Ontario has begun to lift COVID restrictions as the Omicron wave wanes, the lack of organic demand due to the increasing adoption of hybrid work models in the public and private sector will continue to put further pressure on the overall office market and landlords to compete through lower rental rates and high concession offerings. As the federal government is a major tenant in the NCR, Cresa will continue to monitor the federal government’s next steps as it aims to be carbon neutral over the next 25 years to dispose of older space and absorb modern, energy-efficient buildings with a smaller carbon footprint.
Industrial: The Ottawa industrial sector continues to be insulated from the impacts of the coronavirus pandemic in the first quarter of 2022. The national capital region is primed for continued growth as leasing activity continues to remain high, leading to decreasing vacancy rates and increasing net rental rates.